[SallieMae N E W S R E L E A S E]{.underline}

**FOR IMMEDIATE RELEASE** *Media* *Contact:* Martha Holler

> 703/984-5178
>
> *Investor* *Contact:* Joe Fisher
>
> 703/984-5755

**SLM CORPORATION COMPLETES PRIVATIZATION OF STUDENT LOAN MARKETING
ASSOCIATION**

***Federal Charter Terminated Nearly Four Years Ahead of Schedule***

**RESTON, Va., Dec. 29, 2004 --** SLM Corporation (NYSE:
[SLM](../../../../../../../../investor/stock_quote.html)), commonly
known as Sallie Mae, announced today that it has concluded a seven year
privatization process by defeasing the remaining debt obligations of its
government-sponsored enterprise (GSE) subsidiary, the Student Loan
Marketing Association (SLMA), and by dissolving SLMA's federal charter.

SLMA was established by Congress in 1972 to create a national secondary
market for student loans. In 1996, Congress authorized SLMA to privatize
through a corporate reorganization and a transition of the company's
business to state-chartered affiliates; shareholders approved the
reorganization on July 31, 1997. SLM Corporation is completing this
process almost four years ahead of the statutory timeline.

"I am pleased that we have completed this transformation almost four
years ahead of schedule," said Wayne Abernathy, Assistant Secretary
Financial Institutions of the U.S. Department of Treasury. "We applaud
the transformation of Sallie Mae into a wholly private company,
dynamically increasing its options to provide financing services to
students. This is a mission well accomplished."

Since 1997, Sallie Mae has refinanced its \$100 billion of assets with
securitizations and unsecured holding company debt. It has remained
dedicated to its original mission of expanding access to higher
education while working more directly with schools and consumers.
Privatization has also enabled the company to diversify its business
beyond student loans into related areas, including guarantor servicing,
debt collection and consumer finance. Net interest income from the
company's government-guaranteed student loan portfolio --- once Sallie
Mae's sole business --- today represents just more than half of
revenues, while private consumer lending and fee-for service businesses
comprise the balance.

"Today Sallie Mae completes its journey from somewhere near the
intersection of the public/private sectors to the private sector. We
shall forever take pride in the student loan marketplace we created to
meet the specific need Congress foresaw at our creation in 1972. We now
retire the GSE charter, satisfied government's helping hand is no longer
necessary to fulfill Sallie Mae's higher education mission," said Albert
L. Lord, vice chairman and chief executive officer of Sallie Mae.

Lord added, "We are grateful to both the U.S. Department of Treasury and
the U.S. Department of Education as we together managed this process in
a manner satisfactory to the many interested parties."

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**SLM Corporation (NYSE: SLM)**, commonly known as Sallie Mae, is the
nation\'s No. 1 paying-for-college company, managing more than \$98
billion in student loans for more than 7 million borrowers. Sallie Mae
was originally created in 1972 as a government-sponsored entity (GSE)
and terminated all ties to the federal government in 2004. The company
remains the country\'s largest originator of federally insured student
loans. Through its specialized subsidiaries and divisions, Sallie Mae
also provides debt management services as well as business and technical
products to a range of business clients, including colleges,
universities and loan guarantors. More information is available at
[www.salliemae.com]{.underline}.

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