SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
JULY 2, 2004
NELNET, INC.
(Exact name of registrant as specified in its charter)
NEBRASKA 001-31924 84-0748903
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
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121 SOUTH 13TH STREET
SUITE 201
LINCOLN, NEBRASKA 68508
(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code (402) 458-2370
Item 5. Other Events and Regulation FD Disclosure.
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On July 2, 2004, Nelnet, Inc. issued a press release announcing
that, effective June 30, 2004, it will begin to recognize income related
to student loan portfolios funded from the proceeds of tax-exempt bonds,
including amounts previously deferred through that date.
Based on provisions of the Higher Education Act of 1965 and
related interpretations, education lenders may receive special allowance
payments providing a 9.5% rate on loans previously financed with
tax-exempt obligations issued prior to October 1, 1993. The company had
previously sought confirmation regarding whether it was allowed to
recognize special allowance income based on this minimum rate of return.
For periods through March 31, 2004, as previously disclosed, the company
had deferred recognition of this excess income generated by these loans
pending satisfactory resolution of this issue. After consideration of
certain clarifying information received in connection with the guidance
it had sought, and based on written and verbal communications with the
Department of Education, Nelnet has concluded that the earnings process
has been completed. The company is recognizing the related income for
the current period, and will recognize the related income for subsequent
periods as earned.
Earnings related to the deferred income at March 31, 2004, which
deferred income was previously included in other liabilities on Nelnet's
balance sheet, together with related income generated by these loans
during the second quarter, will be included in the company's operating
results for the quarter ended June 30, 2004, which are expected to be
released at the end of July. Nelnet expects the recognition of this
additional income will approximate $60-70 million in the second quarter.
The company does not expect the impact in future quarters to be as
significant as in the second quarter and will be impacted by interest
rates and other factors.
A copy of the press release is attached as Exhibit 99.1 to this
Current Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: July 2, 2004
NELNET, INC.
By: /s/ Michael S. Dunlap
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Name: Michael S. Dunlap
Title: Chairman and Co-Chief Executive
Officer (Co-Principal Executive
Officer)
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release dated July 2, 2004