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 EDUCATION LOAN FUNDING, INC.
             (Exact name of registrant as specified in its charter)


           NEBRASKA                      333-104736            47-0809600
 (State or other jurisdiction            (Commission        (I.R.S. 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) 458-2370



<PAGE>


Item 5. Other Events and Regulation FD Disclosure.
        ------------------------------------------

               Nelnet Education Loan Funding, Inc. (the "Company") is a
        wholly-owned indirect subsidiary of Nelnet, Inc. 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. Nelnet, Inc. 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, the Company 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 the
        Company'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. The Company
        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 issued by Nelnet, Inc. is attached as
        Exhibit 99.1 to this Current Report.



<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 hereunto duly authorized.

Dated:  July 3, 2004

                                    NELNET EDUCATION LOAN FUNDING, INC.




                                      By:  /s/  Terry J. Heimes
                                         ---------------------------------------
                                         Name:  Terry J. Heimes
                                         Title: President
                                                (Principal Executive Officer)


<PAGE>


                                  EXHIBIT INDEX


Exhibit No.       Description
-----------       -----------

99.1              Press Release issued by Nelnet, Inc. dated July 2, 2004
[{"type": "8-K", "sequence": "1", "filename": "ed8k7-04.txt", "secsgml_size_bytes": 4617}]
{"company-data": {"conformed-name": "NELNET EDUCATION LOAN FUNDING INC", "cik": "0001228874", "assigned-sic": "6189", "irs-number": "470809600", "state-of-incorporation": "NE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-104736", "film-number": "04903455"}, "business-address": {"street1": "121 S 13TH STREET STE 201", "city": "LINCOLN", "state": "NE", "zip": "68508", "phone": "4024582303"}, "mail-address": {"street1": "121 S 13TH STREET STE 201", "city": "LINCOLN", "state": "NE", "zip": "68509"}}
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 EDUCATION LOAN FUNDING, INC.
             (Exact name of registrant as specified in its charter)

           NEBRASKA                      333-104736            47-0809600
 (State or other jurisdiction            (Commission        (I.R.S. 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) 458-2370
Item 5. Other Events and Regulation FD Disclosure.
        ------------------------------------------

               Nelnet Education Loan Funding, Inc. (the "Company") is a
        wholly-owned indirect subsidiary of Nelnet, Inc. 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. Nelnet, Inc. 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, the Company 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 the
        Company'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. The Company
        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 issued by Nelnet, Inc. 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 3, 2004

                                    NELNET EDUCATION LOAN FUNDING, INC.

                                      By:  /s/  Terry J. Heimes
                                         ---------------------------------------
                                         Name:  Terry J. Heimes
                                         Title: President
                                                (Principal Executive Officer)
EXHIBIT INDEX

Exhibit No.       Description
-----------       -----------

99.1              Press Release issued by Nelnet, Inc. dated July 2, 2004