UNITED STATES
                       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)   December 5, 2006
                                                   ----------------

             Nelnet Student Loan Trust 2006-3, Issuing Entity (Exact
                 name of registrant as specified in its charter)
                   Nelnet Student Loan Funding, LLC, Depositor
                              Nelnet, Inc., Sponsor

            Delaware                  333-128658-03             75-2997993
            --------                  -------------             ----------
  (State of other jurisdiction         (Commission            (IRS Employer
       of incorporation)               File Number)         Identification No.)


121 South 13th Street, Suite 201, Lincoln, Nebraska            68508
--------------------------------------------------------   ---------------
        (Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code (402) 434-7140
                                                   --------------

--------------------------------------------------------------------------------
         (Former name or former address, if changes since last report.)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]     Written communications pursuant to Rule 425 under the Securities
        Act (17 CFR230.425)

[ ]     Soliciting material pursuant to Rule 14a-12 under the Exchange
        Act (17 CFR240.14a-12)

[ ]     Pre-commencement communications pursuant to Rule 14d-2(b) under the
        Exchange Act (17 CFR240.14(d)-2(b))

[ ]     Pre-commencement communications pursuant to Rule 13e-4(c) un the
        Exchange Act (17 CFR240.13e-4(c))



<PAGE>


ITEM 1.01  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

        Nelnet Student Loan Funding, LLC ("Nelnet Funding") entered into a Trust
Agreement with Wells Fargo Delaware Trust Company, as Delaware Trustee (the
"Trust Agreement"), as of November 1, 2006, creating Nelnet Student Loan Trust
2006-3. Effective December 5, 2006, Nelnet Student Loan Trust 2006-3 entered
into an Indenture of Trust dated as of December 1, 2006, with Zions First
National Bank, as indenture trustee and eligible lender trustee (the
"Indenture"). On November 29, 2006, Nelnet Funding entered into an Underwriting
Agreement among Nelnet Funding, Banc of America Securities LLC, Barclays Capital
Inc. and Citigroup Global Markets Inc., acting on their own behalf and as
representatives of the other underwriters (the "Underwriting Agreement"). The
Trust Agreement, the Indenture and the Underwriting Agreement were executed in
connection with Nelnet Student Loan Trust 2006-3's issuance of $2,213,000,000 of
its student loan asset-backed notes on December 5, 2006. The details of this
issuance are contained in the prospectus supplement filed with the Securities
and Exchange Commission pursuant to Rule 424(b) on December 1, 2006. Nelnet
Student Loan Trust 2006-3 used $2,132,940,261 of the net proceeds from the sale
of the notes to purchase student loans originated under the Federal Family
Education Loan Program.

        The following agreements were also executed and delivered as of December
1, 2006 by the respective parties thereto: (a) the Loan Purchase Agreement by
and between Nelnet Student Loan Trust 2006-3 acting by and through Zions First
National Bank as eligible lender trustee, and Nelnet Funding, acting by and
through Zions First National Bank as eligible lender trustee; (b) the Master
Servicing Agreement by and among National Education Loan Network, Inc., Nelnet
Student Loan Trust 2006-3 and Nelnet Funding; (c) the Subservicing Agreement by
and between National Education Loan Network, Inc. and Nelnet, Inc.; and (d) the
Administration Agreement among Nelnet Student Loan Trust 2006-3, Wells Fargo
Delaware Trust Company, as Delaware trustee, Zions First National Bank, as
indenture trustee, and National Education Loan Network, Inc.

ITEM 9.01  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(a) Not applicable.

(b) Not applicable.

(c) Exhibits:

1.1     Underwriting Agreement among Nelnet Funding, Banc of America Securities
        LLC, Barclays Capital Inc. and Citigroup Global Markets Inc., acting on
        their own behalf and as representatives of the other underwriters, dated
        as of November 29, 2006 (filed herewith).

4.1     Indenture of Trust by and between Nelnet Student Loan Trust 2006-3 and
        Zions First National Bank, dated as of December 1, 2006 (filed
        herewith).

4.2     Trust Agreement by and between Nelnet Student Loan Funding, LLC and
        Wells Fargo Delaware Trust Company, as Delaware trustee, dated as of
        November 1, 2006 (filed herewith).

99.1    Loan Purchase Agreement by and between Nelnet Student Loan Trust 2006-3,
        acting by and through Zions First National Bank as eligible lender
        trustee, and Nelnet Student Loan Funding, LLC, acting by and through
        Zions First National Bank as eligible lender trustee, dated as of
        December 1, 2006 (filed herewith).
<PAGE>

99.2    Master Servicing Agreement by and among National Education Loan Network,
        Inc., Nelnet Student Loan Trust 2006-3 and Nelnet Student Loan Funding,
        LLC, dated as of December 1, 2006 (filed herewith).

99.3    Subservicing Agreement dated as of December 1, 2006, between National
        Education Loan Network, Inc. and Nelnet, Inc. (filed herewith).

99.4    Administration Agreement among Nelnet Student Loan Trust 2006-3, Wells
        Fargo Delaware Trust Company, as Delaware trustee, Zions First National
        Bank, as indenture trustee, and National Education Loan Network, Inc.,
        dated as of December 1, 2006 (filed herewith).



<PAGE>




                                   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 thereunto duly authorized.


                                          NELNET STUDENT LOAN TRUST
                                          2006-3

                                          By:  NELNET STUDENT LOAN FUNDING, LLC,
                                          Depositor


                                          By: NELNET STUDENT LOAN FUNDING
                                              MANAGEMENT CORPORATION, as Manager



                                          By: /s/ Jeffrey R. Noordhoek
                                             -----------------------------------
                                             Jeffrey R. Noordhoek
                                             Vice President

Dated:  December 8, 2006


<PAGE>



                                  EXHIBIT INDEX



               Exhibit
               -------

(1.1)   Underwriting Agreement
(4.1)   Indenture of Trust
(4.2)   Trust Agreement
(99.1)  Loan Purchase Agreement
(99.2)  Master Servicing Agreement
(99.3)  Subservicing Agreement
(99.4)  Administration Agreement
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UNITED STATES
                       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)   December 5, 2006
                                                   ----------------

             Nelnet Student Loan Trust 2006-3, Issuing Entity (Exact
                 name of registrant as specified in its charter)
                   Nelnet Student Loan Funding, LLC, Depositor
                              Nelnet, Inc., Sponsor

            Delaware                  333-128658-03             75-2997993
            --------                  -------------             ----------
  (State of other jurisdiction         (Commission            (IRS Employer
       of incorporation)               File Number)         Identification No.)

121 South 13th Street, Suite 201, Lincoln, Nebraska            68508
--------------------------------------------------------   ---------------
        (Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code (402) 434-7140
                                                   --------------

--------------------------------------------------------------------------------
         (Former name or former address, if changes since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]     Written communications pursuant to Rule 425 under the Securities
        Act (17 CFR230.425)

[ ]     Soliciting material pursuant to Rule 14a-12 under the Exchange
        Act (17 CFR240.14a-12)

[ ]     Pre-commencement communications pursuant to Rule 14d-2(b) under the
        Exchange Act (17 CFR240.14(d)-2(b))

[ ]     Pre-commencement communications pursuant to Rule 13e-4(c) un the
        Exchange Act (17 CFR240.13e-4(c))
ITEM 1.01  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

        Nelnet Student Loan Funding, LLC ("Nelnet Funding") entered into a Trust
Agreement with Wells Fargo Delaware Trust Company, as Delaware Trustee (the
"Trust Agreement"), as of November 1, 2006, creating Nelnet Student Loan Trust
2006-3. Effective December 5, 2006, Nelnet Student Loan Trust 2006-3 entered
into an Indenture of Trust dated as of December 1, 2006, with Zions First
National Bank, as indenture trustee and eligible lender trustee (the
"Indenture"). On November 29, 2006, Nelnet Funding entered into an Underwriting
Agreement among Nelnet Funding, Banc of America Securities LLC, Barclays Capital
Inc. and Citigroup Global Markets Inc., acting on their own behalf and as
representatives of the other underwriters (the "Underwriting Agreement"). The
Trust Agreement, the Indenture and the Underwriting Agreement were executed in
connection with Nelnet Student Loan Trust 2006-3's issuance of $2,213,000,000 of
its student loan asset-backed notes on December 5, 2006. The details of this
issuance are contained in the prospectus supplement filed with the Securities
and Exchange Commission pursuant to Rule 424(b) on December 1, 2006. Nelnet
Student Loan Trust 2006-3 used $2,132,940,261 of the net proceeds from the sale
of the notes to purchase student loans originated under the Federal Family
Education Loan Program.

        The following agreements were also executed and delivered as of December
1, 2006 by the respective parties thereto: (a) the Loan Purchase Agreement by
and between Nelnet Student Loan Trust 2006-3 acting by and through Zions First
National Bank as eligible lender trustee, and Nelnet Funding, acting by and
through Zions First National Bank as eligible lender trustee; (b) the Master
Servicing Agreement by and among National Education Loan Network, Inc., Nelnet
Student Loan Trust 2006-3 and Nelnet Funding; (c) the Subservicing Agreement by
and between National Education Loan Network, Inc. and Nelnet, Inc.; and (d) the
Administration Agreement among Nelnet Student Loan Trust 2006-3, Wells Fargo
Delaware Trust Company, as Delaware trustee, Zions First National Bank, as
indenture trustee, and National Education Loan Network, Inc.

ITEM 9.01  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(a) Not applicable.

(b) Not applicable.

(c) Exhibits:

1.1     Underwriting Agreement among Nelnet Funding, Banc of America Securities
        LLC, Barclays Capital Inc. and Citigroup Global Markets Inc., acting on
        their own behalf and as representatives of the other underwriters, dated
        as of November 29, 2006 (filed herewith).

4.1     Indenture of Trust by and between Nelnet Student Loan Trust 2006-3 and
        Zions First National Bank, dated as of December 1, 2006 (filed
        herewith).

4.2     Trust Agreement by and between Nelnet Student Loan Funding, LLC and
        Wells Fargo Delaware Trust Company, as Delaware trustee, dated as of
        November 1, 2006 (filed herewith).

99.1    Loan Purchase Agreement by and between Nelnet Student Loan Trust 2006-3,
        acting by and through Zions First National Bank as eligible lender
        trustee, and Nelnet Student Loan Funding, LLC, acting by and through
        Zions First National Bank as eligible lender trustee, dated as of
        December 1, 2006 (filed herewith).
99.2    Master Servicing Agreement by and among National Education Loan Network,
        Inc., Nelnet Student Loan Trust 2006-3 and Nelnet Student Loan Funding,
        LLC, dated as of December 1, 2006 (filed herewith).

99.3    Subservicing Agreement dated as of December 1, 2006, between National
        Education Loan Network, Inc. and Nelnet, Inc. (filed herewith).

99.4    Administration Agreement among Nelnet Student Loan Trust 2006-3, Wells
        Fargo Delaware Trust Company, as Delaware trustee, Zions First National
        Bank, as indenture trustee, and National Education Loan Network, Inc.,
        dated as of December 1, 2006 (filed herewith).
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 thereunto duly authorized.

                                          NELNET STUDENT LOAN TRUST
                                          2006-3

                                          By:  NELNET STUDENT LOAN FUNDING, LLC,
                                          Depositor

                                          By: NELNET STUDENT LOAN FUNDING
                                              MANAGEMENT CORPORATION, as Manager

                                          By: /s/ Jeffrey R. Noordhoek
                                             -----------------------------------
                                             Jeffrey R. Noordhoek
                                             Vice President

Dated:  December 8, 2006
EXHIBIT INDEX

               Exhibit
               -------

(1.1)   Underwriting Agreement
(4.1)   Indenture of Trust
(4.2)   Trust Agreement
(99.1)  Loan Purchase Agreement
(99.2)  Master Servicing Agreement
(99.3)  Subservicing Agreement
(99.4)  Administration Agreement