Nolte was born in Omaha, Nebraska, the son of Helen (née King), a department store buyer, and Franklin A. Nolte, a farmer's son who worked in irrigation pump sales and was an All-American candidate at Iowa State in 1934. Nolte's father was of German descent. Nolte's maternal grandfather, Matthew Leander King, invented the hollow-tile silo and was prominent in early aviation. His maternal grandmother ran the student union at Iowa State University.

Nolte went to a public high school at Omaha Benson High School, where he was the kicker on the football team. Nolte got kicked out of Benson for digging a hole and hiding beer before practice and then getting caught drinking it during a practice session. After his expulsion, he attended Westside High School in Omaha. He also attended Pasadena City College. Nolte went on to attend Arizona State University (on a football scholarship); Eastern Arizona College, Thatcher, Arizona; and Phoenix College, Phoenix, Arizona. At Eastern Arizona