Student Loan Finance Association -- Loan Servicing

For more information contact:
Tom Joyce (Sallie Mae)
703.984.5610
Mary Myers (SLFA)
888.311.7532, ext. 5419
Investor contact:
Steven McGarry (Sallie Mae)
703.984.6746

Click here to download a PDF version.

Sallie Mae Completes Acquisition of Student Loan Finance Association

RESTON, Va., Dec. 14, 2004 ĄX SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, today announced that it has completed the purchase of Student Loan Finance Association. The company announced in September its plans to purchase the Seattle-based student loan originator and secondary market from the Education Assistance Foundation.

With the closing of the transaction, the business operations of Student Loan Finance Association will become a subsidiary of SLM Corporation, retaining its own brand and identity. The transaction includes Student Loan Finance Association's $1.6 billion loan portfolio and an origination franchise that generates student loans primarily in Washington, Idaho and Oregon.

Ralph Kosanovich, president and chief executive officer, Student Loan Finance Association, will continue to lead the organization. Separately, Sallie Mae announced a contractual relationship with Northwest Education Loan Association (NELA), a regional guarantor. Sallie Mae will provide a variety of services for NELA, including the marketing of the NELA guarantee to colleges and universities in the Northwest. Tony Bright will be president of NELA Services, a new Sallie Mae unit.

***

SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation's leading provider of education funding, managing more than $98 billion in student loans for more than 7 million borrowers. The company primarily provides federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP), and offers comprehensive information and resources to guide students, parents and guidance professionals through the financial aid process. Sallie Mae was established in 1973 as a government-sponsored enterprise (GSE) called the Student Loan Marketing Association, and began the privatization process in 1997. Since then, the parent company name has changed, most recently to SLM Corporation. Through its specialized subsidiaries and divisions, Sallie Mae also provides an array of consumer credit loans, including those for lifelong learning and K-12 education, and business and technical products and services for colleges and universities. More information is available at "http://www.salliemae.com. SLM Corporation and its subsidiaries, other than the Student Loan Marketing Association, are not sponsored by or agencies of the United States.

Student Loan Finance Association has been providing financial access to education for more than 22 years. Student Loan Finance Association is a not-for-profit company that promotes access to higher education. The company and its subsidiaries, Washington Student Loan Finance Association, Oregon Student Loan Finance Association and Idaho Student Loan Finance Association, participate in the Federal Family Education Loan Program (FFELP) by purchasing student loan portfolios from commercial lenders and holding those loans throughout the repayment period. Student Loan Finance Association offers programs with flexible repayment options, loan consolidation and money-saving borrower benefits to make student loan repayment more affordable. Student Loan Finance Association and its subsidiaries provide financial aid assistance, support services and information to students, families, schools and lenders throughout the Pacific Northwest. More information can be found at www.slfaloan.com.

Northwest Education Loan Association (NELA), a not-for-profit company, assists students and parents in planning for college and understanding financial aid by providing information, training and outreach activities. For 25 years, NELA has successfully administered the Federal Family Education Loan Program (FFELP) and guaranteed student loans against default. Currently, the company manages an outstanding loan portfolio of $5.1 billion and serves as the designated guarantor for Idaho and Washington state. Since 1978, NELA has helped nearly 800,000 students reach their dreams of higher education. More information is available at www.nela.net.

###