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 9.01  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

In connection with the issuance of student loan asset-backed notes by Nelnet
Student Loan Funding Trust 2006-3, the opinions and consent of Kutak Rock LLP
and the opinion and consent of Richards, Layton & Finger, P.A., are attached.

(a) Not applicable.

(b) Not applicable.

(c) Exhibits:

5.1    Opinion of Kutak Rock LLP, dated as of December 5, 2006, with
       respect to due authorization, enforceability and legality of the
       Notes (filed herewith).

5.2    Opinion of Richards, Layton & Finger, P.A., dated as of December 5, 2006
       with respect to due authorization of the notes (filed herewith).

8.1    Opinion of Kutak Rock LLP, dated as of December 5, 2006, with respect to
       certain federal income tax matters (contained in Exhibit 5.1).

23.1   Consent of Kutak Rock LLP, dated as of December 5, 2006 (filed herewith).

23.2   Consent of Richards Layton & Finger, P.A., dated as of December 5, 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 5, 2006


<PAGE>


                                  EXHIBIT INDEX



               Exhibit

(5.1)   Opinion regarding due authorization, enforceability and legality of the
        notes and certain federal income tax matters
(5.2)   Opinion regarding due authorization of the notes
(23.1)  Consent of Kutak Rock LLP
(23.2)  Consent of Richards Layton & Finger, P.A.
[{"type": "8-K", "sequence": "1", "filename": "n8k.txt", "secsgml_size_bytes": 4368}]
{"company-data": {"conformed-name": "Nelnet Student Loan Trust 2006-3", "cik": "0001382045", "assigned-sic": "6189"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-128658-03", "film-number": "061256949"}, "business-address": {"street1": "1215 13TH ST", "street2": "SUITE 301", "city": "LINCOLN", "state": "NE", "zip": "68508", "phone": "4024239583"}, "mail-address": {"street1": "1215 13TH ST.", "street2": "SUITE 301", "city": "LINCOLN", "state": "NE", "zip": "68508"}}
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 9.01  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

In connection with the issuance of student loan asset-backed notes by Nelnet
Student Loan Funding Trust 2006-3, the opinions and consent of Kutak Rock LLP
and the opinion and consent of Richards, Layton & Finger, P.A., are attached.

(a) Not applicable.

(b) Not applicable.

(c) Exhibits:

5.1    Opinion of Kutak Rock LLP, dated as of December 5, 2006, with
       respect to due authorization, enforceability and legality of the
       Notes (filed herewith).

5.2    Opinion of Richards, Layton & Finger, P.A., dated as of December 5, 2006
       with respect to due authorization of the notes (filed herewith).

8.1    Opinion of Kutak Rock LLP, dated as of December 5, 2006, with respect to
       certain federal income tax matters (contained in Exhibit 5.1).

23.1   Consent of Kutak Rock LLP, dated as of December 5, 2006 (filed herewith).

23.2   Consent of Richards Layton & Finger, P.A., dated as of December 5, 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 5, 2006
EXHIBIT INDEX

               Exhibit

(5.1)   Opinion regarding due authorization, enforceability and legality of the
        notes and certain federal income tax matters
(5.2)   Opinion regarding due authorization of the notes
(23.1)  Consent of Kutak Rock LLP
(23.2)  Consent of Richards Layton & Finger, P.A.