1258602--3/1/2007--NELNET

related topics

{regulation, government, change}

{loan, real, estate}

{loss, insurance, financial}

{operation, international, foreign}

{debt, indebtedness, cash}

{tax, income, asset}

{customer, product, revenue}

{system, service, information}

{acquisition, growth, future}

{interest, director, officer}

{stock, price, share}

{condition, economic, financial}

The Company must satisfy certain requirements necessary to maintain the federal guarantees of its federally insured loans, and the Company may incur penalties or lose its guarantees if it fails to meet these requirements. The Company could be sanctioned if it conducts activities which are considered prohibited inducements under the Higher Education Act. Changes in legislation and regulations could have a negative impact upon the Company s business and may affect its profitability. A loss of customer data requiring notification to customers could negatively impact the Company s business. Variation in the maturities, timing of rate reset, and variation of indices of the Company s assets and liabilities exposes the Company to interest rate risks which may adversely affect the Company s earnings. The Company is subject to various market risks which may have an adverse impact upon its business and operations and may have a negative effect on the Company s profitability. The Company is subject to foreign currency exchange risk and such risk could lead to increased costs. The Company s derivative instruments may not be successful in managing interest rate and foreign currency exchange risks, which may negatively impact the Company s operations. The Company faces liquidity risks due to the fact that a portion of its operating and warehouse financing needs are provided by third-party sources. Characteristics unique to asset-backed securitization may negatively affect the Company s continued liquidity. Future losses due to defaults on loans held by the Company present credit risk which could adversely affect the Company s earnings. The Company could experience cash flow problems if a guaranty agency defaults on its guaranty obligation. Competition created by the FDL Program and from other lenders and servicers may adversely impact the Company s business. Higher rates of prepayments of student loans could reduce the Company s profits. Increases in consolidation loan activity by the Company and its competitors present a risk to the Company s loan portfolio and profitability. The volume of available student loans may decrease in the future and may adversely affect the Company s income. The Company may be limited in its ability to pay dividends or make other payments as a result of the terms of certain outstanding securities issued by the Company. Failures in the Company s information technology system could materially disrupt its business. Transactions with affiliates and potential conflicts of interest of certain of the Company s officers and directors, including one of its Co-Chief Executive Officers, pose risks to the Company s shareholders that the Company may not enter into transactions on the same terms that the Company could receive from unrelated, third-parties. Imposition of personal holding company tax would decrease the Company s net income. Do not call registries limit the Company s ability to market its products and services. The Company s inability to maintain its relationships with significant branding and forward flow partners and/or customers could have an adverse impact on its business. The Company s failure to successfully manage business and certain asset acquisitions could have a material adverse effect on the Company s business, financial condition, and/or results of operations.

Full 10-K form ▸

1258602--3/1/2007--NELNET_INC