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Investor Presentation
February 14 – 15, 2006
Safe harbor statement
We would like to remind you that there will be forward
looking statements made during this company
presentation.
The forward looking statements may differ materially from
actual results and are subject to certain risks and
uncertainties.
The company does not intend to update any forward
looking statements made during this presentation.
2
Contents
Tab
1 Corporate overview
• Growth company and growth industry
• Diversified revenue streams
• Economies of scale
2 Legislative update
3 Financial highlights
4 Appendix 1 – Federal Family Education Loan Program “101”
5 Appendix 2 – Executive biographies
3
Our story
Who is Nelnet?
We are a growth company in a growth industry
with sustainable competitive advantages, including:
Diversified revenue streams
Economies of scale
High quality earnings
5
Growth industry
Higher education enrollment (in millions) Annual cost of education1 ($000)
19.5
19.3 21.2
19.1
19.0
18.8
20.5
Education
19.9
18.6 19.4 costs are
18.4 19.1
projected to
18.0
17.5
18.0 18.0
increase at
17.7
16.7
double the rate
17.4
16.0 of inflation.
17.1
15.5
16.9 15.3
14.7
16.6 14.4
'02 '03 '04E '05E '06E '07E '08E '09E '10E '11E '12E '13E '14E '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
Average student loan balance ($) Student loan origination volume
$71.8
($ in billions) $67.6
$26,000
$63.8
$60.2
$56.8
60% $53.7
$52.1
$16,250
$45.4
91% $39.7
$37.4
$8,500
'97 '02 '07E '00 '01 '02 '03 '04E '05E '06E '07E '08E '09E
Source: ED, Octameron Associates, NCES
1Annual average tuition at private, four-year institutions using constant 2005 dollars
6
Growth company
Net Student Loans
(In billions) Total Assets $22.8
(In billions)
$20.3
$15.2
$13.5 $11.9
$10.5 $9.8
$8.6
2002 2003 2004 2005 2002 2003 2004 2005
$649
Total Equity $456
(In millions)
$305
51% or $6.8 billion net
$109 student loan asset growth
from a year ago
2002 2003 2004 2005
7
Diversified revenue and asset generation streams
Products and services
529 Plan Savings Plan Enrollment management Third Party Servicing
Administration Foresite Solutions Nelnet Loan Services
Nebraska 529 Plan
E-commerce Private Loan Servicing
Tuition Payment Plan infiNET Firstmark
Administration
FACTS
School based channel Canadian Loan Servicing
Nelnet brands EDULINX
College Planning Center Branding partners
Nelnet developed Forward flow partners
Guaranty Agency Servicing
Direct to consumer channel GuaranTec
Direct Marketing and Nelnet developed College Access Network
Student Recruiting
Student Marketing Group Software solutions
National Honor Roll IFA Collection Agency Services
Charter Premiere Credit
5280
8
Growing diversified loan origination platform $8.5
— Spot acquisitions
— Branding & forward flow partners
— Nelnet brands & consolidation $3.2
(Dollars in billions)
$4.1
$0.2 $2.5
$3.1
$0.3 $1.8
$2.1
$1.4
$1.4 $0.5
$0.3 $2.8
$1.1 $2.1
$1.0 $1.4
$0.5
$0.1
2001 2002 2003 2004 2005
Note: Direct channel excludes consolidation of existing assets. Information presented for 2002 and prior has been
adjusted for estimated consolidations of our existing portfolio.
9
Nelnet’s industry position
A company that is recognized as a market leader with economies of scale
Top FFELP loan holders(1) Top FFELP loan servicers(2)
Top FFELP loan holders(1) Top FFELP loan servicers(2)
Rank Manager ($bn)
Rank Manager ($bn) Canadian serviced
1 Sallie Mae $85.1
1 Sallie Mae $96.0 portfolio $8 billion.
2 Citibank 21.5
$19.8 billion 2 Nelnet 21.2 Total full serviced
3 Nelnet 12.4 portfolio $35 billion
As of 12/31/2005 3 AES (PHEAA) 21.0
4 First Union 10.1
4 ACS 20.0 As of 12/31/2005
5 Wells Fargo 8.6
5 Great Lakes Ed Loan Svcs 19.0
6 Brazos 7.5
6 Citibank 15.1
7 College Loan Corp 6.3
Others 61.4
8 PHEAA 5.4
• Servicing efficiencies Industry Total $254.0
9 Southwest Student Svcs 4.7
10 Goal Financial 4.0 • Financing efficiencies
Top FFELP Stafford & Plus loan originators(3) Top FFELP loan consolidation originators(4)
Top FFELP Stafford & Plus loan originators(3) • Marketing breadth Top FFELP loan consolidation originators(4)
Rank Manager ($bn) Rank Manager ($bn)
1 Sallie Mae $4.21 1 Sallie Mae $10.72
2 Bank One 3.93 2 Nelnet 2.97
3 Citibank 3.42 3 Citibank 2.73
(5)
Payment Plans (5)
4 Nelnet 2.84 Payment Plans 4 Collegiate Funding 2.27
5 JP Morgan Chase 2.55
Rank Manager 5 College Loan Corp 1.97
6 Bank of America 2.41
1 Facts 650,000 6 Brazos 1.76
7 Wells Fargo 2.25
2 AMS/SLMA 350,000 7 Goal Financial 1.69
8 First Union National 1.89
9 U.S. Bank 1.12 3 TMS 300,000 8 AELMAC/Southwest St. 1.54
10 Access Group 1.06 4 Key Bank 75,000 9 Education Lending Group 1.35
10 Suntrust Bank .75
(1) Source: Nelnet and DOE as of September 30, 2004
(2) Source: SLSA Servicing Volume Survey, December 31, 2004
(3) Source: Nelnet and DOE as of September 30, 2004; Includes Nelnet franchise affiliated partners
(4) Source: DOE as of September 30, 2004
(5) Source: Nelnet based upon industry estimates as of December 31, 2005
10
Reauthorization process will create
changes to the program
Higher education act (HEA) is reauthorized every five to six years
Program changes resulted during this reauthorization process through S. 1932 (the Deficit Reduction Act of
2005) including the following major provisions impacting our program
Borrower interest rates – 6.8% Stafford and 8.5% PLUS fixed borrower interest rates for loans first
disbursed on/after 7/1/2006. Retains current law for consolidation loan fixed interest rate calculation
Lender yield – fixes PLUS SAP gap and rebates excess floor income on all loans disbursed on/after
4/1/2006
Annual loan limits – expands PLUS program to include graduate and professional students effective
7/1/2006, increases 1st and 2nd year Stafford loan maximums to $3,500 and $4,500 and graduate
unsubsidized Stafford maximum to $12,000 effective 7/1/2007
Lender insurance – 97% guarantee for all loans first disbursed on/after 7/1/2006 and 99% exceptional
performer for all loans effective 7/1/2006
Additional – Extended the Taxpayer Teacher Protection Act 9.5% provisions permanently, In-school
consolidations are no longer allowed and 9.5% loan recycling within tax-exempt debt eliminated for
most lenders including Nelnet and phases it out for all lenders by 2010
Changes will help ensure long-term viability of the program
President signed S.1932 February 8, 2006 extending Title IV provisions of the HEA through 2012
President’s FY 2007 Budget does not contain any recommended cuts to the student loan program
11
High quality earnings
Conservative business approach with transparent accounting
No gain on sale
No dilutive stock options
Balance sheet quality
Limited intangibles
12
Financial highlights
Solid historical growth of the balance sheet
Selected Balance Sheet Items Unaudited
(Dollars in thousands) As of As of As of As of
December 31, December 31, December 31, December 31,
Assets 2002 2003 2004 2005
Student loans receivable, net $ 8,559,420 10,455,442 13,461,814 20,260,807
Cash, cash equivalents, and investments 916,572 1,155,215 1,302,954 1,645,797
Goodwill 2,551 2,551 8,522 99,535
Intangible assets, net 21,358 9,079 11,987 153,117
Other assets 266,682 309,899 374,728 639,366
Total assets $ 9,766,583 11,932,186 15,160,005 22,798,622
Liabilities and shareholders' equity
Bonds and notes payable $ 9,447,682 11,366,458 14,300,606 21,673,620
Other liabilities 209,779 260,239 403,224 474,884
Total liabilities 9,657,461 11,626,697 14,703,830 22,148,504
Minority interest in subsidiaries - - - 626
Shareholders’ equity 109,122 305,489 456,175 649,492
Total liabilities and shareholders' equity $ 9,766,583 11,932,186 15,160,005 22,798,622
Ratios:
Net student loans to total assets 87.64% 87.62% 88.80% 88.87%
Shareholders' equity to total assets 1.12% 2.56% 3.01% 2.85%
Tangible equity to total assets 0.87% 2.46% 2.87% 1.74%
Net student loan CAGR 33%
Long-term issuer credit ratings:
Standard & Poor’s BBB+/Moody’s Investor Service Baa2
13
Financial highlights
Solid historical earnings growth
Condensed Income Statement Unaudited
(Dollars in thousands) Year ended Year ended Year ended Year ended
December 31, December 31, December 31, December 31,
2002 2003 2004 2005
Net interest income $ 185,029 171,722 398,166 329,097
Less provision (recovery) for loan losses 5,587 11,475 (529) 7,030
Net interest income after provision (recovery)
for loan losses 179,442 160,247 398,695 322,067
Other income:
Loan servicing and other fee-based income* 105,160 102,959 98,661 188,134
Software services and other income* 22,781 19,017 25,868 17,201
Derivative mkt. value adj. and net settlements (579) (2,784) (46,058) 78,846
Total other income 127,362 119,192 78,471 284,181
Operating expenses:
Salaries and benefits 106,874 124,273 133,667 172,732
Other expenses 123,713 108,768 109,084 150,174
Total operating expenses 230,587 233,041 242,751 322,906
Income before income taxes 76,217 46,398 234,415 283,342
Income tax expense 27,679 19,295 85,236 102,220
Net income $ 48,538 27,103 149,179 181,122
*Note: The amounts for other income have not been
reclassified for the 2005 presentation
14
Financial highlights
Base net income reconciliation
Selected Financial Data
(Dollars in thousands) Unaudited
Year ended Year ended Year ended Year ended
December 31, December 31, December 31, December 31,
2002 2003 2004 2005
GAAP net income $ 48,538 27,103 149,179 181,122
Base adjustments:
Derivative market value adjustments 600 1,183 11,918 (95,854)
Amortization of intangible assets 22,200 12,766 8,768 9,479
Variable-rate floor income (49,800) (12,830) (348) -
Total base adjustments before income taxes (27,000) 1,119 20,338 (86,375)
Net tax effect 10,260 (425) (7,728) 32,823
Total base adjustments (16,740) 694 12,610 (53,552)
Base net income $ 31,798 27,797 161,789 127,570
Earnings per share, basic and diluted:
GAAP net income $ 1.08 0.60 2.78 3.37
Base net income $ 0.71 0.61 3.02 2.37
Special allowance yield adjustments (a) 0.00 0.00 (2.00) (0.91)
Base net income, excluding the special allowance
yield adjustments (a) $ 0.71 0.61 1.02 1.46
(a) The special allowance yield adjustments are net of derivative settlements and taxes.
Note: 2003 net income included approximately $10.3 million ($8.3 million tax effected) of expenses related
to the initial public offering such as, contract terminations and non-cash compensation.
15
Interest rate sensitivity
Fixed rate portfolio composition
(Dollars in millions) Borrower/lender Estimated December 31, 2005
weighted variable balance of fixed rate
average yield conversion rate* assets
Assets earning at fixed rate:
Fixed borrower rate bucket
7-8% 7.51% 4.87% $ 384
>8% 8.54% 5.90% $ 1,040
9.5% Floor yield 9.50% 6.86% $ 3,485
Assets earning at fixed rate $ 4,909
Fixed rate liabilities and derivatives:
Fixed rate debt $ 519
Fixed rate swaps and derivatives $ 3,838
Total fixed rate liabilities and derivatives $ 4,357
Percent of fixed rate portfolio funded with fixed rate liabilities and derivatives:
Total 88.8%
*The estimated variable conversion rate is the estimated short-term interest rate at which loans would
convert to variable rate.
16
Fundamental value
We are a growth company in a growth industry
with sustainable competitive advantages, including:
Diversified revenue streams
Economies of scale
High quality earnings
17
Questions and discussion
18
Appendix 1:
Federal Family Education Loan Program
Student Loans 101
Federal Family Education Loan Program (FFELP)
Student Loans 101
Government guaranteed collateral
Loans are originated under the FFELP
Properly serviced FFELP student loans are entitled to at least a 98% guarantee (97% for
loans first disbursed on/after 7/1/2006) from the US Department of Education (ED)…while a
student loan servicer is designated as an Exceptional Performer, loans are guaranteed at
100% of principal plus interest (99% on/after 7/1/2006)
Guaranty agencies act as clearing houses to pay claims for the ED, however the ultimate
credit risk lies with the US Government
Government subsidized
Generally, Stafford and PLUS borrowers pay a floating rate of interest; consolidation borrowers
pay a fixed rate (Stafford, PLUS and Consolidation Borrower interest rates will be fixed for loans first
disbursed on/after 7/1/2006)
Through “Special Allowance Payments” (SAP) by the US Government, the holder of the loan (i.e.
Nelnet) earns the greater of the borrower interest rate or the borrower interest rate plus the SAP
margin (Effective for loans first disbursed on/after 4/1/2006, lenders will always earn the SAP rate…any
excess interest will be rebated to the ED)
SAP ensures holders of FFELP student loans receive a market rate of return even as interest
rates fluctuate
Repayment features
Multiple Stafford and PLUS loans can be consolidated into one longer term (10-30 year
repayment), with a fixed interest rate to the borrower. Consolidation loans are eligible
for SAP which creates a variable rate loan to the holder in rising rate environments
If returning to school or suffering financial hardship, borrowers have the option to defer
payments for up to 3 years while interest
continues to accrue
20
FFELP Student Loans 101
Mechanics Rein
sura
nce
claim
Rein
SAP / ISP sura
nce
$
Payment of principal &
interest Claim package
98% guarantee
ds
f un
rse
Financial aid & loan bu tio
n
Dis lica
application pp Lender requests guarantee
n a
oa
ie dl
rtif
Ce Guarantee issued
FFELP Loans remain eligible for ED guarantee so long as servicers follow specified due diligence
guidelines such as initiating certain collection procedures and maintaining accurate loan records
Nelnet is one of the best performing servicers in the industry and has received the Exceptional
Performance status by ED. Historical net losses due to ED guarantee ineligibility have ranged
from 1/2 to 5 bps annually
Special allowance payments (SAP) and interest subsidy payments (ISP) from the ED ensure that
FFELP loan holders receive a market rate of return; while borrowers may pay either fixed or
floating rates of interest, the holder receives the greater1 of the borrower interest rate
and 90-day CP or 91-day T-bill plus a margin of 1.74% to 3.50% based on the type of
loan (Stafford, PLUS, Consolidation), status of the loan (in-school, grace,
repayment), and date of disbursement
1) For loans disbursed on/after 4/1/2006 lenders will always earn the SAP rate,
any excess interest will be rebated to ED
21
FFELP Student Loans 101
Special allowance payment (SAP)
Subsidized and Unsubsidized Stafford Loans
Date of loan Annualized SAP rate
On or after 10/01/1981 T-Bill Rate less Applicable Interest Rate + 3.50%
On or after 11/16/1986 T-Bill Rate less Applicable Interest Rate + 3.25%
On or after 10/01/1992 T-Bill Rate less Applicable Interest Rate + 3.10%
On or after 07/01/1995 T-Bill Rate less Applicable Interest Rate + 3.10% (1)
On or after 07/01/1998 T-Bill Rate less Applicable Interest Rate + 2.80% (2)
On or after 01/01/2000 3 Month Commercial Paper Rate less Applicable
Interest Rate + 2.34% (3)
(1) Substitute 2.5% in the formula while loans are in-school, grace or deferment status.
(2) Substitute 2.2% in the formula while loans are in-school, grace or deferment status.
(3) Substitute 1.74% in the formula while loans are in-school, grace, or deferment status.
PLUS, SLS and Consolidation Loans
Date of loan Annualized SAP rate
On or after 10/01/1992 T-Bill Rate less Applicable Interest Rate + 3.10%
On or after 01/01/2000 3 Month commercial Paper Rate less Applicable Interest Rate + 2.64%
(Consolidation loans are subject to a 1.05% annualized loan rebate fee)
Loans currently or previously financed with tax exempt bonds issued prior to 10/01/1993
T-Bill Rate less Applicable Interest Rate + 3.50%
2
The SAP may not be less than 9.5% less the Applicable Interest Rate.
22
FFELP Student Loans 101
Description of 9.5% loans
The Higher Education Act (the “Act”) spells out the 9.5% Floor SAP provisions
Loans are called “9.5% Floor Loans” because the Act effectively establishes a minimum 9.5%
rate of return on these loans
FFELP loans currently or previously financed with tax-exempt bonds originally issued prior to October
1, 1993 are eligible to receive 9.5% Floor SAP
The performance of these 9.5% loans varies by interest rate environment:
High interest rates: 9.5% Floor Loans loans earn only half SAP
Low interest rates: Potential for large excess spread between the 9.5% floor and
prevailing interest rates
Timeline of 9.5% floor loan legislation
Bill introduced in General Accounting Public Law 108-409 The temporary bill
Congress to, among Office published report (H.R. 5186) eliminated passed in October 2004
other things, remove describing, among other payment of the 9.5% became permanent as
the 9.5% floor things, provisions of the floor SAP for new part of the Deficit
provisions in the Act that permitted loans previously Reduction Act of 2005
future growth of 9.5% Floor financed with pre- signed by the President
Loans among many October 1, 1993 tax- on 2/8/2006. Also
student loan industry exempt bonds effective eliminates 9.5% yield to
participants. Report October 1, 2004 recycled loans in pre-
recommends Act be through January 1, 1993 tax-exempt bonds
changed to eliminate 2006 for majority of lenders
payment of 9.5% floor
23
FFELP Student Loans 101
Loan limits
Stafford Loans - Subsidized and Unsubsidized
$ 2,625 - 1st academic year undergraduate ($3,500 effective 7/1/2007)
$ 3,500 - 2nd academic year undergraduate ($4,500 effective 7/1/2007)
$ 5,500 - per academic year remaining undergraduate
$ 8,500 – per graduate academic year
Graduate and independent undergraduate students are also eligible for
additional Unsubsidized Stafford Loan Funds.
$ 4,000 – 1st and 2nd academic year undergraduates
$ 5,500 – additional academic years of undergraduate
$ 10,000 – graduate students ($12,000 effective 7/1/2007)
$ 46,000 – Maximum aggregate undergraduate borrowing
$138,500 – Maximum aggregate undergraduate and graduate borrowing
($140,500 effective 7/1/2007)
Loan limits for PLUS Loans
PLUS Loans made on or after 07/01/1993 are limited only by the student’s
unmet need (Eligibility extended to graduate students effective 7/1/2006)
24
FFELP Student Loans 101
Borrower interest rates
Stafford Subsidized and Unsubsidized Loans:
Borrower interest rate for loans originated on or after 07/01/1998 and before 07/01/2006
Calculation:
Adjusted annually, based upon last auction in May of the bond equivalent rate of 91-day
U.S. Treasury bills plus 1.7% per annum for in-school, grace and deferment, plus 2.3%
per annum during repayment, not to exceed 8.25%. Currently 4.70% and 5.30%
(6.8% fixed rate for loans first disbursed on/after 7/1/2006)
PLUS Loans:
Borrower interest rate for loans originated on or after 07/01/1998 and before 07/01/2006
Calculation:
Adjusted annually, based upon last auction in May of the bond equivalent rate of 91-day U.S.
Treasury bills plus 3.1% per annum, not to exceed 9%, currently 6.10%
(8.5% fixed rate for loans first disbursed on/after 7/1/2006)
Consolidation Loans:
Borrower interest rate for loans originated from applications received
on or after 10/01/1998
Calculation:
Will be equal to the lesser of 8.25% or the weighted average of the interest rates
on the loans being consolidated, rounded to the nearest higher 1/8th of 1%.
25
FFELP Student Loans 101
Overview of the payment and guarantee process
US student loans are ultimately 98% to 100% guaranteed by the US Government
(97% for loans first disbursed on/after 7/1/2006)
Guaranty agencies will reimburse the lender 98% (97% for loans first disbursed
on/after 7/1/2006) or for exceptional performers 100% (99% for claims filed on/after
7/1/2006) if the borrower defaults as long as the servicing has been done properly
If the guaranty agency becomes insolvent, the federal government is required to pay
lender claims directly or reassign the guarantee obligation to another agency
As per section 432(o) of the Higher Education Act, 20 U.S.C.S. §1082(o):
CONSEQUENCES OF GUARANTY AGENCY INSOLVENCY. – In the event that the
Secretary has determined that a guaranty agency is unable to meet its insurance
obligations under this part, the holder of loans insured by the guaranty agency may
submit insurance claims directly to the Secretary and the Secretary shall pay to the
holder the full insurance obligation of the guaranty agency, in accordance with
insurance requirements no more stringent than those of the guaranty agency. Such
arrangements shall continue until the Secretary is satisfied that the insurance
obligations have been transferred to another guarantor who can meet those
obligations or a successor will assume the outstanding insurance obligations
26
FFELP Student Loans 101
Flow chart of loss protection for investors in structured debt transactions
27
Appendix 2:
Executive biographies
Key Contacts:
Mike Dunlap Chairman & Co-CEO 402.458.3032
Steve Butterfield Vice-Chairman & Co-CEO 480.947.7703
Jeff Noordhoek President 402.458.3072
Terry Heimes CFO 402.458.2303
Cheryl Watson CCO, Investor Relations 317.469.2064
Jim Kruger Controller 402.458.2304
Sheila Odom Director, Corp. Comm. 402.458.2329
28
Biographies
Michael S. Dunlap, 42, is Nelnet’s Chairman and Co-Chief Executive Officer. From December 2001 until August 2003, Mr. Dunlap served as
Nelnet’s President and sole Chief Executive Officer, and from January 1996 to December 2001, he served as Chairman of Nelnet’s predecessor.
Mr. Dunlap has been a member of the Nelnet Board of Directors since 1989. Mr. Dunlap is currently the Chairman of the Board, InfoVisa, and non-
executive Chairman of Union Bank and Trust Company, a Nelnet affiliate where he has held various positions for approximately 20 years, including
Chief Executive Officer. Mr. Dunlap is also a Director and President of Farmers & Merchants Investment Inc., the parent of Union Bank and Trust
Company and a Nelnet affiliate. Mr. Dunlap serves on the President’s Community Council for Union College and the Board of Directors for the
University of Nebraska Foundation. He currently serves as Chairman of the Education Committee of the Young Presidents’ Organization, Nebraska
Chapter. In addition, Mr. Dunlap is a member of the Board of Directors of First National Life Insurance Company USA, Linweld, Inc., Capital
Casualty Company, and BankFirst of Norfolk. Mr. Dunlap is a member of the Nebraska State Bar Association. He received a B.S. degree in
Finance and Accounting in 1986 and a J.D. degree from the University of Nebraska in 1988.
Stephen F. Butterfield, 53, has served as Nelnet’s Co-Chief Executive Officer since August 2003, and as the Vice Chairman since March
2000. He served as Vice Chairman and a Director of Nelnet’s predecessor since January 1996. Mr. Butterfield is responsible for managing our
capital market relationships and investor relations. Mr. Butterfield directs our overall management and direction, including asset purchasing,
marketing of corporate services, and coordination of our capital market activities. Mr. Butterfield has been involved in the student loan industry
since January 1989, first as president of a for-profit student loan secondary marketing facility located in Scottsdale, Arizona, and second as
president of the Student Loan Acquisition Authority of Arizona, a non-profit secondary marketing facility in Scottsdale, Arizona. Prior to his work in
the student loan industry, Mr. Butterfield spent 15 years as an investment banker, the last four years of which for Boettcher and Company,
specializing in municipal finance. Mr. Butterfield received his B.S. degree in business administration from Arizona State University.
Jeffrey R. Noordhoek, 39, is Nelnet’s President. In this role, Mr. Noordhoek has broad oversight responsibilities of Nelnet, Inc. and focuses
on strategic planning and growth initiatives with Co-Chief Executive Officers Mike Dunlap and Steve Butterfield. In addition, he oversees Nelnet's
Merger and Acquisitions, Capital Markets, Investor Relations, Government and Industry Relations, and Corporate Communications departments.
Noordhoek most recently served as Nelnet's Chief Capital Markets Officer, and has been an integral member of Nelnet's capital markets
group since 1996. Previously, Mr. Noordhoek served as Senior Vice President of National Education Loan Network Inc, a
subsidiary of Nelnet, until October 2002. Prior to that, he served as a Vice President of Nelnet's predecessor Union Financial
Services, Inc. Before joining Nelnet, Mr. Noordhoek served seven years in various capacities, including as a Senior Associate
for State Street Capital Corporation where he assisted in the establishment of commercial paper conduit financing vehicles.
While at State Street, Mr. Noordhoek worked at its offices in Luxembourg, Toronto, and Boston and successfully executed
securitizations in numerous asset classes. Mr. Noordhoek earned a B.S. degree in business administration from the
University of Nebraska in 1988 and an M.B.A. from Boston University in 1996.
29
Biographies
Terry J. Heimes, 41, has served as our Chief Financial Officer and as Executive Director in charge of Finance since March 2001. He is
responsible for the coordination of all financial and accounting functions. Active in our strategic planning and direction, Mr. Heimes oversees the
preparation and issuance of financial statements, corporate accounting/tax matters, and our asset-backed securitization and warehousing
activities. Mr. Heimes served as our Director from March 2001 until August 2003. In October 1998, in connection with the conversion
and acquisition of NEBHELP, Mr. Heimes became the vice president of finance of National Education Loan Network, Inc., a
subsidiary of Nelnet. Prior to joining NEBHELP, Mr. Heimes worked for the public accounting firm of KPMG LLP in Lincoln,
Nebraska, through 1992 as a manager in the audit department. Mr. Heimes graduated magna cum laude from the University
of Nebraska-Kearney with a B.S. degree in business administration with an emphasis in accounting in 1986.
Cheryl E Watson, 44, is Nelnet’s Chief Communications Officer and is responsible for the company’s debt and equity investor relationships,
government and industry relations and corporate communications. She serves as the company's site executive for the Indianapolis office, and also
provides oversight to the company's subsidiary Premiere Credit. Watson also participates in the company's strategic planning and capital markets
initiatives. Ms. Watson has served on the Nelnet Board of Directors from April 2002 until August 2003. Ms. Watson has held financial service
positions in education lending and private industry for over 20 years, including 13 years at Sallie Mae. Ms. Watson has extensive background in
developing, negotiating, and managing financial instruments. Prior to joining Nelnet, she served as a consultant for a venture capital firm pursuing
investment in education finance companies. At Sallie Mae Ms. Watson held several high profile positions before becoming President and Chief
Financial Officer of USA Group Secondary Market Services and concurrently serving as Vice President and Treasurer of Sallie Mae Servicing,
LLP. Ms. Watson currently serves on the Board of Directors for the Greater Indianapolis Area YMCA, Indiana Wesleyan PACE, Central Indiana
Junior Achievement Experiential Learning Foundation, and as Treasurer for the Riverview Hospital Foundation. She earned a B.S. degree with a
major in accounting from Indiana University in 1985, is a Certified Public Accountant, a member of the American Institute of Certified Public
Accountants and the Indiana CPA Society, and the National Investor Relations Institute.
30
Biographies
James D. Kruger, 42, is Nelnet’s Executive Director and Controller. He is responsible for coordination of all financial accounting functions.
Mr. Kruger oversees the preparation and issuance of financial statements, corporate accounting/tax matters, and our asset-backed
securitization and warehousing activities. Mr. Kruger served as Director from March 2001 until August 2003. In October 1998,
in connection with the conversion and acquisition of NEBHELP, Mr. Kruger became the Assistant Vice President of Finance of
National Education Loan Network, Inc., a subsidiary of Nelnet. Prior to joining NEBHELP, Mr. Kruger worked for the public
accounting firm of KPMG LLP in Lincoln, Nebraska, through 1994 as a Senior Manager in the audit department. Mr. Kruger
graduated from the University of Nebraska in 1986 with a B.S. degree in business administration with an
emphasis in accounting.
Sheila Odom, 37, Director of Corporate Communications and Investor Relations. She joined Nelnet as Director of Corporate
Communications in June 2001. In December of 2001, Ms. Odom acquired responsibility for the company’s Marketing
Communications and Branding departments. After joining Nelnet’s Investor Relations team in January of 2005, Odom continues
to oversee Nelnet’s internal and external Corporate Communications, Public Relations, and Media Relations. Odom serves as
the Site Executive for Nelnet’s Lincoln, Nebraska office, is a member of the company’s Disclosure committee, and serves as Vice
President and a Board member for the Nelnet Foundation. Ms. Odom previously served seven years as Director of Marketing
Communications for the Harrington Group, a privately held firm operating lines of business in financial services, marketing, and
educational publishing. Ms. Odom is credited for calling national attention to the Harrington Group’s financial products through
interviews with CNBC television, the New York Times, the Los Angeles Times, Entrepreneur, Business Start-Ups, and additional
financial publications. Prior to joining the Harrington Group, Ms. Odom directed the public relations, public education, and
professional education activities of a state chapter of the American Cancer Society. In addition to a number of civic volunteer
positions, Ms. Odom serves on the Junior Achievement of Lincoln Board of Directors, and is a member of the National Investor
Relations Institute. She holds a Bachelor of Arts degree from Iowa State University and is currently pursuing a Master’s degree
from Bellevue University.
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