Sallie Mae launches new private loan in-school payment option

RESTON, Va., June 29, 2010—For the price of two pizzas or less than a dollar a day each month, college students can keep their student loan interest in check and ultimately save an estimated 30 percent in interest charges. Now available with a new, $25-per-month, in-school payment plan, Sallie Mae’sSmart Option Student Loanis designed not only to save students money, but also to help them pay off their loans faster. Sallie Mae is the nation’s leading saving, planning and paying for college company.

For a typical freshman, a simple $25 monthly payment while in school and a shorter repayment period after school can translate into $6,300 of interest savings over the life of the loan, compared to private education loans that capitalize—that is, add to the loan balance—all of the interest that accrues during school. In addition, a typical customer would pay off the loan in 10 years after graduation, instead of the standard 15-year-term offered by other deferred payment private student loans. Additional details are available in thissavings example.

“To encourage responsible borrowing, we make our most competitive rates available to those who keep up with their interest payments while in school,” said Joe DePaulo, executive vice president and chief marketing officer, Sallie Mae. “We also recognize that, for some students, the option to pay some interest and defer the rest fits their budget now and saves them lots of money in the long run.”

Introduced in March 2009, Sallie Mae’s Smart Option Student Loan is one of the first loans of its kind to help save college students money by requiring interest payments while in school and shortening the repayment term. The company designed the $25 payment plan to make it easier for families who understand the benefits of making in-school payments but want a standard, fixed monthly payment amount. Sallie Mae has also introduced benefits such as an on-time payment reward and faster cosigner release.

Whether students attending degree-granting institutions elect monthly in-school payments of $25 per month or elect monthly full interest payments, they will benefit this year from Sallie Mae’s lower interest rates and zero disbursement fees. Based on today’s LIBOR index of 0.375, undergraduate and graduate student rates for the $25 per month payment option range between 3.85 percent and 10.48 percent; rates for the full interest payment option range between 2.87 percent and 10.21 percent.

Over the summer, the company is inviting students to tweet about how they plan to make the Smart Option Student Loan work for them for achance to win $500. The public is invited to vote every week to pick finalists and then each month to select a grand prize winner for June, July and August.

Sallie Mae recommends private student loans to help bridge the college financing gap after exploring scholarships, grants and federal student loans. For more information, visitwww.SallieMae.com/loansmart.

For more information, contact:

Patricia Nash Christel(703) 984-5382

Erica Eriksdotter(703) 984-5628

SLM Corporation(NYSE:SLM), commonly known as Sallie Mae, is the nation’s leading saving, planning and paying for education company. Sallie Mae’s saving programs, planning resources and financing options have helped more than 31 million people make the investment in higher education. Through its subsidiaries, the company manages $182 billion in education loans and serves 10 million student and parent customers. In addition, the company’s Upromise program has enabled 12 million members to earn more than $525 million in rewards to help pay for college. Its Upromise affiliates also manage more than $25 billion in 529 college-savings plans. Sallie Mae offers services to a range of institutional clients, including colleges and universities, student loan guarantors and state and federal agencies. More information is available atwww.SallieMae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.