**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**__________________**

**FORM      10-Q**

**__________________**

| **x**      | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934**  |   |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|       |                                                                                                                                      |   |
|       | **For                the quarterly period ended June 30, 2006**                                                                           |   |
|       |                                                                                                                                      |   |
|       | **or**                                                                                                                                    |   |
|       |                                                                                                                                      |   |
| ** ̈** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |   |
|       |                                                                                                                                      |   |
|       | **For                the transition period from ___ to ___**                                                                              |   |

**THE      STUDENT LOAN CORPORATION**

| **Delaware**                                            |   | **16-1427135**                                      |
|---------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of          |   | (I.R.S.                Employer Identification No.) |
| incorporation                or organization)           |   |                                                |
|                                                    |   |                                                |
| **750                Washington Blvd.**                 |   | **06901**                                           |
| **Stamford,                Connecticut**                |   | (Zip                Code)                           |
| (Address                of principal executive offices) |   |                                                |

**(203)      975-6320**

**__________________**

|   | Yes | **x**  | No | **o** |   |
|--------|-----|-------------|----|-------|--------|

| Large                accelerated filer **x** | Accelerated                filer **o** | Non-accelerated                filer **o** |
|----------------------------------------------|----------------------------------------|--------------------------------------------|

|   | Yes | **o** | No | **x** |   |
|--------|-----|-------|----|-------|--------|

| Part                I        | Consolidated                Financial Information |                                                                                                                                                                  |
|------------------------------|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                              |                                                                                                                                                                  | Page |
|                         | Item                1 -                           | Consolidated                Financial Statements                                                                                                                      |   |
|                         |                                              |                                                                                                                                                                  |   |
|                         |                                              | Consolidated                Statement of Income (Unaudited) for the Three- and Six-Month Periods                Ended June 30, 2006 and 2005                     | 3 |
|                         |                                              |                                                                                                                                                                  |   |
|                         |                                              | Consolidated                Balance Sheet as of June 30, 2006 (Unaudited) and December 31, 2005                (Audited)                                         | 4 |
|                         |                                              |                                                                                                                                                                  |   |
|                         |                                              | Consolidated                Statement of Cash Flows (Unaudited) for the Six-Month Periods                Ended June 30, 2006 and 2005                            | 5 |
|                         |                                              |                                                                                                                                                                  |   |
|                         |                                              | Consolidated                Statement of Changes in Stockholders’ Equity (Unaudited) for the Six-Month                Periods Ended June 30, 2006 and 2005 | 6 |
|                         |                                              |                                                                                                                                                                  |   |
|                         |                                              | Notes                to Consolidated Financial Statements (Unaudited)                                                                                                 | 7                -                18 |
|                         |                                              |                                                                                                                                                                  |   |
|                         | Item                2 -                           | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                             | 19                - 31 |
|                         |                                              |                                                                                                                                                                  |   |
|                         | Item                3 -                           | Quantitative                and Qualitative Disclosures About Market Risk                                                                                             | 32 |
|                         |                                              |                                                                                                                                                                  |   |
|                         | Item                4 -                           | Controls                and Procedures                                                                                                                                | 33 |
|                         |                                              |                                                                                                                                                                  |   |
| Part                II       | Other                Information                  |                                                                                                                                                                  |
|                         |                                              |                                                                                                                                                                  |   |
|                         | Item              1A-                        | Risk              Factors                                                                                                                                        | 34  |
|                         |                                              |                                                                                                                                                                  |   |
|                         | Item 4              -                   | Submission              of Matters to a Vote of Security Holders                                                                                                 | 34  |
|                         |                                              |                                                                                                                                                                  |   |
|                         | Item                6 -                           | Exhibits                                                                                                                                                              | 34  |
|                         |                                              |                                                                                                                                                                  |   |
| Signature                    | 35                                           |
|                         |                                              |                                                                                                                                                                  |   |
| Exhibit                Index | 36-37                                        |

**PART      I   CONSOLIDATED FINANCIAL INFORMATION**

| **Item                1.** | **Consolidated                Financial Statements** |
|----------------------------|------------------------------------------------------|

**THE      STUDENT LOAN CORPORATION**

|                                                                                                                                                                                                                                                                      | Three                months ended                   |   | Six months                ended    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|-----------------------------------------|
|                                                                                                                                                                                                                                                                      | June 30,                                       |   | June 30,                           |
|                                                                                                                                                                                                                                                                      | 2006                                                |   | 2005                                    |   | 2006 |   | 2005 |
| **REVENUE**                                                                                                                                                                                                                                                               |                                                |   |                                    |   |   |   |   |
| Interest                income                                                                                                                                                                                                                                            | $                430,641                            |   | $                322,406                |   | $                807,558 |   | $                605,342 |
| Interest                expense to principal shareholder                                                                                                                                                                                                                  | 315,453                                             |   | 193,356                                 |   | 585,272 |   | 347,397 |
| **Net                interest income**                                                                                                                                                                                                                                    | 115,188                                             |   | 129,050                                 |   | 222,286 |   | 257,945 |
| Less:                provision for loan losses                                                                                                                                                                                                                            | (5,302)                                             |   | (4,799)                                 |   | (11,441) |   | (5,401) |
| **Net                interest income after provision for loan losses**                                                                                                                                                                                                    | 109,886                                             |   | 124,251                                 |   | 210,845 |   | 252,544 |
| Gains                on loans securitized                                                                                                                                                                                                                            |  69,073                                        |   |  47,787                            |   |  69,073 |   |  47,787 |
|    Gains                on loan                sales                                  |                   13,448                  |   | 222                                     |   |                     20,199 |   | 247 |
| Fee                and other income                                                                                                                                                                                                                                       | 14,247                                              |   | (8,930)                                 |   | 19,396 |   | (9,736) |
| **Total                revenue, net**                                                                                                                                                                                                                                     | 206,654                                             |   | 163,330                                 |   | 319,513 |   | 290,842 |
|                                                                                                                                                                                                                                                                      |                                                |   |                                    |   |   |   |   |
| **OPERATING                EXPENSES**                                                                                                                                                                                                                                     |                                                |   |                                    |   |   |   |   |
| Salaries                and employee benefits                                                                                                                                                                                                                             | 13,447                                              |   | 11,827                                  |   | 26,159 |   | 23,240 |
| Other                expenses                                                                                                                                                                                                                                             | 26,938                                              |   | 28,446                                  |   | 51,788 |   | 44,966 |
| **Total                operating expenses**                                                                                                                                                                                                                               | 40,385                                              |   | 40,273                                  |   | 77,947 |   | 68,206 |
| **Income                before income taxes and extraordinary item**                                                                                                                                                                                                      | 166,269                                             |   | 123,057                                 |   | 241,566 |   | 222,636 |
| Income                taxes                                                                                                                                                                                                                                               | 64,459                                              |   | 47,616                                  |   | 93,601 |   | 81,059 |
| **Income                before extraordinary item**                                                                                                                                                                                                                       | 101,810                                             |   | 75,441                                  |   | 147,965 |   | 141,577 |
| Gain                on extinguishment of trust, net** **of                taxes of $3,448 for the three- and six-month periods ended June                30, 2005                                                                                          | -                                                   |   | 5,465                                   |   | - |   | 5,465 |
| **NET                INCOME**                                                                                                                                                                                                                                             | $                101,810                            |   | $                 80,906           |   | $                147,965 |   | $                147,042 |
|                                                                                                                                                                                                                                                                      |                                                |   |                                    |   |   |   |   |
| **DIVIDENDS                DECLARED**                                                                                                                                                                                                                                     | $                  26,000                 |   | $                 21,600           |   | $                  47,600 |   | $                  43,200 |
|                                                                                                                                                                                                                                                                      |                                                |   |                                    |   |   |   |   |
| **BASIC                AND DILUTED EARNINGS**                                                                                                                                                                                                                             |                                                |   |                                    |   |   |   |   |
| **PER                COMMON SHARE**                                                                                                                                                                                                                                       |                                                |   |                                    |   |   |   |   |
| (based                on 20 million average shares outstanding)                                                                                                                                                                                                           |                                                |   |                                    |   |   |   |   |
| Income                before extraordinary item                                                                                                                                                                                                                           | $                     5.09 |   | $                   3.78 |   | $                     7.40 |   | $                      7.08 |
| Extraordinary                item                                                                                                                                                                                                                                         | -                                                   |   | 0.27                                    |   | - |   | 0.27 |
| **NET                INCOME**                                                                                                                                                                                                                                             | $                     5.09 |   | $                   4.05 |   | $                     7.40 |   | $                      7.35 |
|                                                                                                                                                                                                                                                                      |                                                |   |                                    |   |   |   |   |
| **DIVIDENDS                DECLARED PER COMMON SHARE**                                                                                                                                                                                                                    | $                     1.30 |   | $                   1.08 |   | $                     2.38 |   | $                      2.16 |

**THE      STUDENT LOAN CORPORATION**

|                                                    | June 30,                                                                                                                                      |                        | December                31, |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|-----------------------------|
|                                                    |                                                                                                                                               |                        |                        | 2006 |   | 2005 |
|                                                    |                                                                                                                                               |                        |                        | (Unaudited) |   | (Audited) |
| **ASSETS**                                              |                                                                                                                                               |                        |                        |   |   |
|                                                    | Federally                insured student loans                                                                                                     | $                16,023,880 |                        | $                17,508,605 |
|                                                    | Private                education loans                                                                                                             | 5,913,138                   |                        | 4,812,443 |
|                                                    | Deferred                origination and premium costs                                                                                              | 740,397                     |                        | 706,736 |
|                                                    | Less:                allowance for loan losses                                                                                                     | (9,936)                     |                        | (4,990) |
|                                                    | Student                loans, net                                                                                                                  |                        |                        | 22,667,479 |   | 23,022,794 |
|                                                    | Other                loans and lines of credit                                                                                                     |                        |                        | 94,400 |   | 50,085 |
|                                                    | Loans                held for sale                                                                                                                 |                        |                        | 1,968,631 |   | 2,067,937 |
|                                                    | Cash                                                                                                                                               |                        |                        | 23,231 |   | 1,152 |
|                                                    | Residual              interests in securitized loans                                                                                               |                        |  273,137               |   |  188,454 |
|                                                    | Other                assets                                                                                                                        |                        |                        | 832,289 |   | 657,275 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
|                                                    | **Total                Assets**                                                                                                                    |                        |                        | $                25,859,167 |   | $                25,987,697 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY** |                                                                                                                                               |                        |                        |
|                                                    | Short-term                borrowings, payable to principal shareholder                                                                             | $                12,500,000 |                        | $                10,781,100 |
|                                                    | Long-term                borrowings, payable to principal shareholder                                                                              | 11,200,000                  |                        | 13,200,000 |
|                                                    | Deferred                income taxes                                                                                                               |                        |                        | 304,481 |   | 289,843 |
|                                                    | Other                liabilities                                                                                                                   |                        |                        | 389,065 |   | 354,909 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
|                                                    | Total                Liabilities                                                                                                                   |                        |                        | 24,393,546 |   | 24,625,852 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
|                                                    | Common                stock, $0.01 par value; authorized 50,000,000 shares; 20,000,000                shares                issued and outstanding | 200                         |                        | 200 |
|                                                    | Additional                paid-in capital                                                                                                          |                        | 141,300                     |   | 139,383 |
|                                                    | Retained                earnings                                                                                                                   |                        |                        | 1,324,121 |   | 1,222,262 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
|                                                    | Total                Stockholders' Equity                                                                                                          |                        | 1,465,621                   |   | 1,361,845 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |
|                                                    | **Total                Liabilities and Stockholders' Equity**                                                                                      | $                25,859,167 |                        | $                25,987,697 |
|                                                    |                                                                                                                                               |                        |                        |   |   |   |

**THE      STUDENT LOAN CORPORATION**

|                                                                                                     |                                                                                                                            |                      |                                           |                                | Six months                ended |
|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------------------------------------|-------------------------------------|--------------------------------------|
|                                                                                                     |                                                                                                                            |                      |                                           |                                | June                30,              |
|                                                                                                     |                                                                                                                            |                      |                                           |                                | **2006**                             |   | **2005** |
| Cash                flows from operating activities:                                                     |                                                                                                                            |                      |                                           |                                |
| Net                income                                                                                | $                  147,965                                                                                       |                      | $                  147,042      |
| Adjustments                to reconcile net income to net cash from operating                activities: |                                                                                                                            |                      |                                           |
|                                                                                                     | Depreciation                and amortization of equipment and computer software                                                 | 6,590                |                                           | 6,644                          |
|                                                                                                     | Amortization                of servicing asset                                                                                  | -                    |                                           | 1,816                          |
|                                                                                                     | Amortization                of deferred loan origination and purchase costs                                                     | 72,022               |                                           | 53,214                         |
|                                                                                                     | Accreted              interest on residual interests                                                                       |  (8,882)             |                                           |  (2,620)                       |
|                                                                                                     | Provision                for loan losses                                                                                        | 11,441               |                                           | 5,401                          |
|                                                                                                     | Deferred                tax provision                                                                                           | 13,696               |                                           | 62,502                         |
|                                                                                                     | Gains                on loan sales                                                                                         | (20,199)                  |                                           | (247)                               |
|                                                                                                     | Gain              on loans securitized                                                                                     |  (69,073)            |                                           |  (47,787)                      |
|                                                                                                     | Loss/(gain)                on valuation of residual interests designated as trading                                             | 2,437                |                                           | (1,589)                             |
|                                                                                                     | Gain              on extinguishment of the 2002 Trust                                                                 |  -              |                                           |  (8,913)                       |
|                                                                                                     | Loss                on valuation of servicing assets                                                                            | 8,498                |                                           |  -                        |
|                                                                                                     | Disbursements                of loans for resale                                                                                | -                    |                                           | (24,878)                            |
|                                                                                                     | Secondary                market and other loan procurement activity for resale                                                  | (10,019)                  |                                           | (14,387)                            |
|                                                                                                     | Impairment                loss on residual interests in securitized assets                                                      | 2,934                |                                           | 11,817                         |
|                                                                                                     | Impairment                loss on servicing assets in securitized assets                                                        | -                    |                                           | 8,363                          |
|                                                                                                     | Increase                in accrued interest receivable                                                                          | (156,608)                 |                                           | (87,619)                            |
|                                                                                                     | Increase                in other assets                                                                                         | (7,032)                   |                                           | (1,676)                             |
|                                                                                                     | Increase                in other liabilities                                                                                    | 36,074               |                                           | 15,880                         |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| **Net                cash provided by operating activities**                                        | 29,844                                                                                                                     |                      | 122,963                                   |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| Cash                flows from investing activities:                                                     |                                                                                                                            |                      |                                           |
|                                                                                                     | Disbursements                of loans                                                                                           |                      |                                           | (1,766,528)                         |                                 | (1,550,405) |
|                                                                                                     | Secondary                market and other loan procurement activity for portfolio                                               | (3,570,246)               |                                           | (3,133,179)                         |
|                                                                                                     | Redemption              of 2002 Trust beneficial interests, net of expenses                                                |  -              |                                           |  (373,352)                     |
|                                                                                                     | Loan                reductions                                                                                                  | 2,932,175            |                                           | 1,981,689                      |
|                                                                                                     | Increase                in loan originations costs and purchase premiums                                                   | (150,791)                 |                                           | (218,685)                           |
|                                                                                                     | Proceeds                from loans sold                                                                                         | 682,394              |                                           | 12,574                         |
|                                                                                                     | Proceeds              from securitization activity                                                                         |  2,197,282      |                                           |  2,026,549                |
|                                                                                                     | Cash                received on residual interests in securitized assets                                                        | 3,754                |                                           | 6,050                          |
|                                                                                                     | Capital                expenditures on equipment and computer software                                                          | (7,105)                   |                                           | (6,509)                             |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| **Net                cash provided by/(used in) investing                activities**               | 320,935                                                                                                                    |                      | (1,255,268)                                    |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| Cash                flows from financing activities:                                                     |                                                                                                                            |                      |                                           |
|                                                                                                     | Net                (decrease)/increase in borrowings with original maturities of one                year or                less | (281,100)                 |                                           | 4,825,400                      |
|                                                                                                     | Repayments                of borrowings with original terms of one year or more                                                 | -                    |                                           | (3,650,000)                         |
|                                                                                                     | Dividends                paid to stockholders                                                                                   | (47,600)                  |                                           | (43,200)                            |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| **Net                cash (used in)/provided by financing activities**                                   | (328,700)                                                                                                                       |                      | 1,132,200                                 |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| **Net                increase/(decrease) in cash**                                                       | 22,079                                                                                                                     |                      | (105)                                          |
| **Cash                - beginning of period**                                                            | 1,152                                                                                                                      |                      | 628                                       |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| **Cash                - end of period**                                                                  | $  23,231                                                                                                        |                      | $      523  |
|                                                                                                     |                                                                                                                            |                      |                                           |                                |                                 |   |   |
| **Supplemental                disclosure:**                                                              |                                                                                                                            |                      |                                           |
|                                                                                                     | Cash                paid for:                                                                                                   |                      |                                           |                                |
|                                                                                                     | Interest                                                                                                                        | $559,087             |                                           | $312,778                       |
|                                                                                                     | Income                taxes, net                                                                                                | $  73,418  |                                           | $                 54,444  |

**THE      STUDENT LOAN CORPORATION**

|                                                                         |                                                                                                                                      | Six months                ended June 30,                                                                                 |
|------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|                                                                         |                                                                                                                                      | 2006                                                                                                                               |   | 2005 |
| **COMMON                STOCK AND ADDITIONAL PAID-IN CAPITAL**               |                                                                                                                                      |                                                                                                                               |   |
|                                                                         | Balance,                beginning of period                                                                                               | $                  139,583                                                                                               |   | $                  139,376 |
|                                                                         | Capital                contributions and other changes                                                                                    | 1,917                                                                                                                              |   | 145 |
|                                                                         | Balance,                end of period                                                                                                     | $                  141,500                                                                                               |   | $                  139,521 |
|                                                                         |                                                                                                                                      |                                                                                                                               |   |   |
| **RETAINED                EARNINGS**                                         |                                                                                                                                      |                                                                                                                               |   |
|                                                                         | Balance,                beginning of period                                                                                               | $1,222,262                                                                                                                         |   | $                  999,702 |
|                                                                         | Cumulative                effect of adoption of accounting standard, net of taxes of $941 in                2006                          | 1,494                                                                                                                              |   | - |
|                                                                         | Net                income                                                                                                                 | 147,965                                                                                                                            |   | 147,042 |
|                                                                         | Common                dividends declared, $2.38 per common share in 2006 and $2.16 per                common share in 2005 | (47,600)                                                                                                                           |   | (43,200) |
|                                                                         | Balance,                end of period                                                                                                     | $1,324,121                                                                                                                         |   | $1,103,544 |
|                                                                         |                                                                                                                                      |                                                                                                                               |   |   |
| **ACCUMULATED                OTHER CHANGES IN EQUITY FROM NONOWNER SOURCES** |                                                                                                                                      |                                                                                                                               |   |
|                                                                         | Balance,                beginning of period                                                                                               |                  $              -                       |   | $                      7,829 |
|                                                                         | Net                change in unrealized losses on investment securities, net of taxes                of                $(5,017) in 2005   | -                                                                                                                                  |   | (7,829) |
|                                                                         | Balance,                end of period                                                                                                     |                    $                             - |   | $                              - |
|                                                                         |                                                                                                                                      |                                                                                                                               |   |   |
| **TOTAL                STOCKHOLDERS' EQUITY**                                | $1,465,621                                                                                                                                |                                                                                                                               | $1,243,065 |
|                                                                         |                                                                                                                                      |                                                                                                                               |   |   |
| **SUMMARY                OF CHANGES IN EQUITY FROM NONOWNER SOURCES**        |                                                                                                                                      |                                                                                                                               |   |
|                                                                         | Net                income                                                                                                                 | $                  147,965                                                                                               |   | $   147,042 |
|                                                                         | Changes                in equity from nonowner sources, net of taxes                                                                      | -                                                                                                                                  |   | (7,829) |
|                                                                         | Total                changes in equity from nonowner sources                                                                              | $                  147,965                                                                                               |   | $   139,213 |

**THE      STUDENT LOAN CORPORATION**

**Notes        to Consolidated Financial Statements (Unaudited)**

**June        30, 2006**

| **1.** | **Basis                  of Presentation and Critical Accounting                  Policies** |
|--------|----------------------------------------------------------------------------------------------|

**Interim        Financial Information**

** **

**Use        of Estimates**

**Principles        of Consolidation**

**Revenue        Recognition**

*Accounting        for Nonrefundable Fees and Costs Associated with Originating or Acquiring        Loans        and Initial Direct Costs of Leases*

**Loans**

**Allowance        for Loan Losses**

**Transfer        of Student Loans through Sale or Securitization**

***Whole        Loan Sales***

*Accounting        for Transfers and Servicing of Financial Assets and Extinguishments of        Liabilities, a replacement of FASB Statement No. 125 *

***Loans        Securitized***

**Loans        Held for Sale**

**Internally        Developed Software**

*        Accounting for the Costs of Computer Software Developed or Obtained for Internal        Use.*

| **2.** | **New                    Accounting Standards** |
|--------|-------------------------------------------------|

***Accounting        for Certain Hybrid Financial Instruments***

*Accounting        for Certain Hybrid Financial Instruments*
*.*

***Accounting        for Servicing of Financial Assets***

*Accounting        for Servicing of Financial Assets, an Amendment to SFAS No. 140*

| **3.** | **Student****Loans** |
|--------|----------------------|

|                                                                                                               | **June                30,** |         | **                 December 31,** |   |
|--------------------------------------------------------------------------------------------------------------------|-----------------------------|--------------|----------------------------------------|--------|
| (*Dollars                in thousands)*                                                                            | **2006**                    |         | **2005**                               |   |
| Federal                Stafford Loans                                                                              | $                           | 8,163,962    |                                   | $      | 8,374,721 |   |
| Federal                Consolidation Loans                                                                         |                        | 7,028,664    |                                   |   | 8,177,635 |   |
| Federal                SLS/PLUS/HEAL Loans                                                                         |                        | 831,254      |                                   |   | 956,249 |   |
| CitiAssist                Loans                                                                                    |                        | 5,913,060    |                                   |   | 4,812,361 |   |
| Other                alternative loans                                                                             |                        | 78           |                                   |   | 82 |   |
| Total                student loans held, excluding deferred costs                                                  |                        | 21,937,018   |                                   |   | 22,321,048 |   |
| Deferred                origination and premium costs                                                              |                        | 740,397      |                                   |   | 706,736 |   |
| Student loans                held                                                                             |                        | 22,677,415   |                                   |   | 23,027,784 |   |
| Less:                allowance for loan losses                                                                     |                        | (9,936)      |                                   |   | (4,990) |   |
| **Student                loans held, net**                                                                         |                        | 22,667,479   |                                   |   | 23,022,794 |   |
| Loans                held for sale, primarily Federal Consolidation Loans, excluding deferred                costs |                        | 1,936,118    |                                   |   | 2,039,728 |   |
| Deferred                origination and premium costs                                                         |                        | 32,513       |                                   |   | 28,209 |   |
| **Loans                held for sale**                                                                             |                        | 1,968,631    |                                   |   | 2,067,937 |   |
| **Other                loans and lines of credit**                                                            |                        |  94,400 |                                   |   |  50,085 |   |
| **Total                loan assets**                                                                               | $                           | 24,730,510   |                                   | $      | 25,140,816 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **June                30,** |      | **                 December 31,** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|-----------|----------------------------------------|
| *(Dollars                in thousands)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2006**                    |      | **2005**                               |
| Total                CitiAssist Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $                           | 5,913,060 |                                   | $ | 4,812,361 |
| CitiAssist                Loans in repayment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                           | 2,657,026 |                                   | $ | 2,541,869 |
| CitiAssist                Loans in forbearance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $                           | 163,508   |                                   | $ | 193,383 |
| CitiAssist                Loans delinquent 30 - 89 days as a % of total CitiAssist Loans in                repayment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                        | 1.8%      |                                   |   | 1.8% |
| CitiAssist                Loans delinquent 90 days or greater as a % of total CitiAssist Loans                in                repayment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        | 0.9%      |                                   |   | 0.7% |
| Allowance                for loan losses for CitiAssist Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $                           | 4,417     |                                   | $ | 2,997 |
| Total                CitiAssist Loans insured by third party insurers(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $                           | 5,113,429 |                                   | $ | 4,149,354 |
| Total                uninsured CitiAssist Loans(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $                           | 799,631   |                                   | $ | 663,007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                        |      |                                   |   |   |
| (1)      See                Allowance for Loan Losses in Note 1 regarding the Company's insured                loans.(2)                     Of the uninsured CitiAssist Loans, $530.5 million and $436.9 million                at June 30, 2006 and December 31, 2005,                 respectively, are           covered under                risk-sharing arrangements                with certain schools and universities.  See Allowance for Loan Losses                in Note 1 regarding                            risk-sharing agreements with certain schools                and universities.    |

| **4.** | **Other                Assets** |
|--------|---------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | **June                  30,** |    | **                   December 31,** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|------------------------------------------|
| (*Dollars                  in thousands*)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **2006**                      |    | **2005**                                 |
| Accrued                  interest receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                                     |   |   |
| from                  student loan borrowers/others                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                             | 481,479 |                                     | $ | 382,181 |
| from                  federal government                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                          | 177,990 |                                     |   | 133,732 |
| Servicing                  asset from securitization activity (note 9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                          | 100,689 |                                     |   | 76,784 |
| Equipment                  and computer software(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                          | 47,746  |                                     |   | 47,231 |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          | 24,385  |                                     |   | 17,347 |
| Total                  other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                             | 832,289 |                                     | $ | 657,275 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          |    |                                     |   |   |
| (1)      This                  amount primarily includes capitalized internally developed software                  at June 30, 2006 and December 31, 2005.  These amounts                  are reflected                             net of accumulated                  depreciation                  and amortization, as appropriate, of $39.4 million and $32.8                  million at June                  30, 2006 and December                  31, 2005,                             respectively.                          |

| **5.**  | **Fee                and Other                Income/(Loss)**  |
|--------------|---------------------------------------------------------------------|

|                                                                                                                                              | **Three-month                period **  | **Six-month                period **  |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|-------------------------------------------------|
|                                                                                                                                              | **ended                June 30,**            | **ended                June 30,**          |
| *(Dollars                  in thousands)*                                                                                                         |                  **2006**                    |                  **2005**                  |   | **2006**  |   | **2005**  |
| Mark-to-market                gains/(losses) on residual interests                                                                                |  $                                           | 2,506                                           | $ | 1,589 | $ |  (2,437) | $ |  1,589 |
| Mark-to-market losses on                servicing assets                                                                           |                                              |  (5,256)                                   |   |  - |   |  (8,498) |   |  - |
| Mark-to-market                gains on derivatives                                                                                      |                                              |  8,424                                     |   |  - |   |  11,301 |   |  - |
| Servicing                fees on securitized assets (for the periods ended June 30, 2005, fees                are net of amortization)  |                                              | 6,420                                           |   | 871 |   |  13,301 |   |  1,877 |
| Other origination                and servicing fees, primarily from CBNA                                                                |                                              | 930                                             |   | 931 |   |  2,800 |   |  2,625 |
| Servicing                asset impairments                                                                                                        |                                              | -                                               |   | (8,096) |   |  - |   |  (8,363) |
| Residual                interest impairments                                                                                                      |                                              | (2,249)                                         |   | (6,115) |   |  (2,934) |   |  (11,817) |
| Late                fees                                                                                                                          |                                              | 1,048                                           |   | 1,796 |   |  3,254 |   |  4,151 |
| Other                                                                                                                                             |                                              | 2,424                                           |   | 94 |   |  2,609 |   |  202 |
| Total                fee and other income/(loss)                                                                                                  | $                                                 | 14,247                                          | $ | (8,930) | $ |  19,396 | $ |  (9,736) |

| **6.** | **Related                Party Transactions** |
|--------|-----------------------------------------------|

|                                                                                                                                        |   | **Three-month                period**   |          | **Six-month                period**     |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------------|-----------------------------------------|
| *(Dollars                in thousands)*                                                                                                |   | **ended June                30,**  |          | **ended                June 30,**  |
|                                                                                                                                        |   | **2006**                                |          | **2005**                           |   | **2006**  |   | **2005**  |
| **Revenues**Interest income                                                                                                            |   | $                                            | 105           |                                    | $ | - |   |  $ | 216 |   |  $ | 9 |
| Interest                expense                                                                                                        |   |                                         |  315,453 |                                    |   |  193,356 |   |   |  585,272 |   |   |  347,397 |
| Fee                and other income                                                                                                         |   |                                         | 930           |                                    |   | 931 |   |   |  2,800 |   |   |  2,625 |
| **Operating                Expenses*****Salaries                and employee benefits***Employee                benefits and administration |   | $                                            | 2,712         |                                    | $ | 2,281 |   |  $ |  5,128 |   |  $ |  4,513 |
| Stock-based                compensation                                                                                                     |   |                                         | 701           |                                    |   | 272 |   |   |  1,083 |   |   |  490 |
| ***Other                expenses***                                                                                                         |   |                                         |          |                                    |   |   |   |   |   |   |   |   |
| Servicing,                professional and other fees paid                                                                                  |   | $                                            | 11,462        |                                    | $ | 9,434 |   |  $ |  21,188 |   |  $ |  18,413 |
| Data                processing and communications                                                                                 |   |                                         |  1,463   |                                    |   |  1,931 |   |   |  3,020 |   |   |  3,545 |
| Premises,                primarily rent                                                                                                     |   |                                         | 731           |                                    |   | 622 |   |   |  1,467 |   |   |  1,243 |
| Other                                                                                                                                       |   |                                         | 391           |                                    |   | 128 |   |   |  756 |   |   |  312 |

*CBNA          Omnibus Credit Agreement*

*Interest          Rate Derivative Agreements*

*Servicing          Fees Earned*

*Servicing          Expenses*

*CBNA          Tax-sharing Agreement*

*Other          Intercompany Arrangements*

**Interest            Rate Derivative Agreements**

Company              enters into interest              rate derivative agreements to manage its interest rate risk exposure              resulting              from variability between the rates paid on its borrowings (based on              LIBOR) and              the rate received on its loan assets (based on either the 91-day Treasury              Bill              rate, Prime Rate or the 90-day Commercial Paper rate).

*Accounting for Derivative Instruments and Hedging              Activities*

**Commitments              and Contingencies**

**Forward-Looking Statements**

| **9.** | **Student                Loan Securitizations** |
|--------|-------------------------------------------------|

| *(Dollars                  in thousands)*                              |   | **         June                  30, 2006** |            | **December                  31, 2005** |   |
|------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|-----------------|----------------------------------------|--------|
| Total                  student loan assets in trusts                   |   | $                                                                                        | 7,334,115  |                                   | $      | 5,427,693 |   |
| Residual                  interests                                    |   |                                                                                     | 273,137    |                              |   | 188,454 |   |
| Servicing                  assets                                      |   |                                                                                     | 100,689    |                                   |   | 76,784 |   |
| Receivable                  from trusts for servicing                  |   |                                                                                     | 2,165      |                                   |   | 1,776 |   |
| Payable                  to trusts for student loan payments |   |                                                                                     | 4,867      |                                   |   | 1,007 |   |

| *(Dollars                    in thousands)*                |   |  2006                  |   |  **2005** |
|------------------------------------------------------------|--------|-----------------------------|--------|----------------|
| Cash                    received from trusts for servicing |   |                      $ | 12,912 |           |                      $ | 3,719 |
| Cash                    received from trusts on residual   |   |              | 3,754  |           |     | 6,050 |

| *(Dollars                  in thousands*)                                        |   | **Three                  Months Ended****June                  30,**  |    | **Six Months                  Ended ****June                  30,**  |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------|--------|
|                                                                             |   | **2006**                                                                   |    | **2005**                                                                            |   | **2006** |   | **2005** |   |
| Balance                  at beginning of period                                  |   | $                                                                          | 187,299 |                                                                                | $      | 60,203 |   | $ | 188,454 |   | $ | 72,733 |   |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Accreted                  interest                                               |   |                                                                       | 4,409   |                                                                                |   | 980 |   |   | 8,882 |   |   | 2,620 |   |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Cash                  flows from trusts                                          |   |                                                                       | (3,754  | )                                                                              |   | - |   |   | (3,754 | ) |   | (6,050 | ) |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Temporary                  change in fair value of available-for-sale securities |   |                                                                       | **-**   |                                                                                |   | (565 | ) |   | - |   |   | (2,983 | )  |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Mark-to-market                  gains/(losses) on residual interests        |   |                                                                       | 2,506   |                                                                                |   | 1,589 |   |   | (2,437 | )  |   | 1,589 |   |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Residual                  interest impairments                                   |   |                                                                       | (2,249  | )                                                                                   |   | (6,115 | )  |   | (2,934 | ) |   | (11,817 | )  |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Student                  Loan securitizations                               |   |                                                                       | 84,926  |                                                                                |   | 57,333 |   |   | 84,926 |   |   | 57,333 |   |
|                                                                             |   |                                                                       |    |                                                                                |   |   |   |   |   |   |   |   |   |
| Extinguishment                  of the 2002 Trust                                |   |                                                                       | -       |                                                                                |   | (18,088 | )  |   | - |   |   | (18,088 | )  |
| Balance                  at end of period                                        |   | $                                                                          | 273,137 |                                                                                | $      | 95,337 |   | $ | 273,137 |   | $ | 95,337 |   |

| *(Dollars                  in thousands)*               |   | **Three                    Months Ended**** June                    30,**  |    | **Six                    Months Ended**** June                    30,** |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------|--------|
|                                                         |   | **2006**                                                                             |    | **2005**                                                                     |   | **2006** |   | **2005** |   |
| Balance                    at beginning of period            |   | $                                                                                    | 75,977  |                                                                         | $      | 27,029 |   | $ | 76,784 |   | $ | 28,177 |   |
| Cumulative                    effect adjustment              |   |                                                                                 | -       |                                                                         |   | - |   |   | 2,435 |   |   | - |   |
| Other-than-temporary                    impairment           |   |                                                                                 | -       |                                                                         |   | (8,096 | ) |   | - |   |   | (8,363 | ) |
| Mark-to-market                    losses on servicing assets |   |                                                                                 | (5,256  | )                                                                            |   | - |   |   | (8,498 | ) |   | - |   |
| Trust                    securitizations                     |   |                                                                                 | 29,968  |                                                                         |   | 29,114 |   |   | 29,968 |   |   | 29,114 |   |
| Amortization                                                 |   |                                                                                 | -       |                                                                         |   | (935 | ) |   | - |   |   | (1,816 | ) |
| Balance                    at end of period                  |   | $                                                                                    | 100,689 |                                                                         | $      | 47,112 |   | $ | 100,689 |   | $ | 47,112 |   |

|                                                                | ** 2006**                          |
|---------------------------------------------------------------------|-----------------------------------------|
| Discount                rate                                        | 10.0%                                   |
| Consolidation                prepayment rates                       | Up                to 11.6% in 5 to |
|                                                                | 10                years                 |
| Anticipated                net credit losses                        | 0.10%                                   |
| Basis                spread between LIBOR and Commercial Paper rate | 0.10%                                   |
| Borrower                Benefits - Automated Clearing House         | 19.0%                                   |
| Borrower                Benefits - On time payments                 | 17.2%                                   |

|                                                                | **June                30, 2006**        | **December                31, 2005** |
|---------------------------------------------------------------------|-----------------------------------------|--------------------------------------|
| Discount                rate                                        | 10.0%                                   | 10.0%                                |
| Consolidation                prepayment rates                       | Up                to 11.6% in 5 to | Up                to 10.0% in 6 to   |
|                                                                | 10                years                 | 10                years              |
| Anticipated                net credit losses                        | 0.09%                to 0.12%           | 0.00%                                |
| Basis                spread between LIBOR and Commercial Paper rate | 0.10%                                   | 0.10%                                |
| Borrower                Benefits - Automated Clearing House         | 17.0%                to 39.8%           | 18.0%                to 39.7%        |
| Borrower                Benefits - On time payments                 | 15.4%                to 39.5%           | 14.5%                to 33.0%        |

|                                           | **June                30, 2006**                                |   | **December                31, 2005**                       |
|------------------------------------------------|-----------------------------------------------------------------|--------|------------------------------------------------------------|
| Discount                rate                   | 6.6%                                                            |   | 6.0%                                                       |
| Consolidation                prepayment rates  | Up                to 11.6% in 5 to 10                years |   | Up                to 10.0% in 6 to 10                years |
| Anticipated              net credit loss  |  0.09%              to 0.12%                               |   |  0.00%                                                |
| Servicing                margin                | 24                to 27 basis points                       |   | 26                basis points                             |

| *(Dollars                in thousands)*               | Residual                Interests       | Servicing                Assets               |
|-------------------------------------------------------|-----------------------------------------|-----------------------------------------------|
| Fair                value at June 30, 2006            | $    273,137        | $    100,689              |
| Discount                rate                          | 10.0%                                   | 6.6%                                          |
| 10%                adverse change                     | $(11,938)                               | $                 (2,469)                |
| 20%                adverse change                     | $(22,884)                               | $                 (4,831)                |
| Consolidation                prepayment rate          | Up                to 11.6% in 5 to | Up                to 11.6% in 5 to       |
|                                                  | 10                years                 | 10                years                       |
| 10%                adverse change                     | $                 (5,934)          | $                 (2,194)                |
| 20%                adverse change                     | $(11,392)                               | $                 (4,183)                |
| Anticipated              net credit losses  |  0.09%              to 0.12%       |  0.09%              to 0.12%             |
| 10%              adverse change                  |  $               (2,168)      |  $                  (599) |
| 20%              adverse change                  |  $               (4,392)      |    $ (1,165)              |
| Servicing                margin                       | -                                       | 24                to 27 basis points     |
| 10%                adverse change                     | -                                       | $                 (8,513)                |
| 20%                adverse change                     | -                                       | $(16,458)                                     |
| Basis                spread                           | 0.10%                                   | -                                             |
| 10%                adverse change                     | $                 (3,146)          | -                                             |
| 20%                adverse change                     | $                 (6,293)          | -                                             |
| Borrower                benefits - ACH                | 17.0%                to 39.8%           | -                                             |
| 10%                adverse change                     | $                 (2,022)          | -                                             |
| 20%                adverse change                     | $                 (3,902)          | -                                             |
| Borrower                benefits - on time payments   | 15.4%                to 39.5%           | -                                             |
| 10%                adverse change                     | $                 (5,613)          | -                                             |
| 20%                adverse change                     | $(11,091)                               | -                                             |

| **10.                       ** | **Short-                and Long-Term                Borrowings** |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------|

| **11.** | **Future                Application of Accounting                Standards** |
|---------|------------------------------------------------------------------------------|

***Accounting        for Uncertainty in Income Taxes***

*Accounting        for Uncertainty in Income Taxes, an interpretation of FASB Statement No.        109*

| **Item                2.** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

**General**

**Forward-Looking        Statements**

**Background        of The Student Loan Corporation**

**Management        Summary**

***Special        Allowance and Floor Income***
** **

**Critical        Accounting Policies**

**Accounting        Changes and Future Application of Accounting Standards**

***Accounting        for Certain Hybrid Financial Instruments***

*Accounting        for Certain Hybrid Financial Instruments*
*.*

***Accounting        for Servicing of Financial Assets***

*Accounting        for Servicing of Financial Assets, an Amendment to SFAS No. 140*

***Accounting        for Uncertainty in Income Taxes***

*Accounting        for Uncertainty in Income Taxes, an interpretation of FASB Statement No.        109*

**Financial        Condition**

|  *(Dollars                in millions)*                          | **June                30,****2006   ** | **June                30,****2005   ** |
|-----------------------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| Balance                at beginning of period                         | $25,141                                               | $24,889                                               |
| FFEL                Program Stafford and PLUS Loan disbursements | 1,767                                                 | 1,575                                                 |
| Secondary                market and other loan procurement activities | 3,580                                                 | 3,148                                                 |
| Redemption              of the 2002 Trust                        |  -                                               | 370                                                   |
| Loan                reductions(1)                                     | (2,932)                                               | (1,982)                                               |
| Loan              securitizations                                |  (2,200)                                         |  (2,026)                                         |
| Loan sales,                gross                                 | (662)                                                 | (12)                                                  |
| Deferred                costs and other adjustments                   | 37                                                    | 143                                                   |
| Balance                at end of period                               | $24,731                                               | $26,105                                               |

***Balance      Sheet Data***

| *(Dollars                  in millions)*              |   | **June                  30,****2006** |       | **December                  31,****2005** |   |
|-------------------------------------------------------|--------|---------------------------------------|------------|-------------------------------------------|--------|
| Average                  owned loans (year to date)   |   | $                                     | 26,399,311 |                                      | $      | 26,305,182 |   |
| Average                  managed loans (year to date) |   | $                                     | 31,999,386 |                                      | $      | 29,273,135 |   |
| Managed                  loans at end of period       |   | $                                     | 32,074,561 |                                      | $      | 30,573,499 |   |

***Loan      Disbursement and Procurement Activity***

|                                                                                                                | **Three                months ended June 30,**                             | **Six                months ended June 30,**                                          |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
| *(Dollars                in millions)*                                                                              | **2006**                                                                        | **2005**                                                                                   | **2006** | **2005** |
| FFEL                Program Stafford and PLUS Loan disbursements                                          |                    $   491(1)      |                    $    394(2)      | $1,767(1)  | $1,575(2) |
| CitiAssist                Loans disbursed under     commitments                to purchase, net |                     162(3)                                  |                     140(4)                                             |                    781(3) |                          688(4)      |
| Total loan disbursements                and commitments                                              |  $                  653                      |  $                  534                                 |                     $2,548          |                     $2,263         |

|                                                                        | **Three                months ended June 30,**  | **Six                months ended June 30,**                    |
|-----------------------------------------------------------------------------|------------------------------------------------------|----------------------------------------------------------------------|
| *(Dollars                in millions)*                                      | **2006**                                             | **2005**                                                             | **2006** | **2005** |
| FFEL                Program volume, primarily Consolidation Loans           |  $   858     |  $                  730      | $1,575  | $1,527 |
| Purchases                of CitiAssist Loans                                |                   1,024(1)                 |                     710(1)                       |                     1,367(1) |                     1,217(1) |
| Other                loan purchases                                         |                   362                      |  320                                                            |                    638 |                    404 |
| Total                secondary market and other loan procurement activities |  $2,244(2)                                      | $1,760(3)                                                            |                     $3,580(2)   |                     $3,148(3)   |

|   | (1) | The                Company purchases CitiAssist Loans from CBNA shortly after final                disbursement. These loans have also been fully included in the loan                disbursements and commitments table above in CitiAssist                Loans disbursed under commitments to purchase,in this quarter or                in prior                quarters depending on when the loan was disbursed by                CBNA.   |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Of                these procurements, $2,242 million of loans were procured for portfolio                and $2 million were procured for resale during the three-month                period ended June 30, 2006 and $3,570 million were procured for portfolio                and $10 million were procured for resale for the six-month period                ended                June 30, 2006. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (3)  | Amount              includes $1,754 million procured for portfolio and $6 million procured              for              resale for the three months ended June 30, 2005 and $3,134 million              procured for portfolio and $14 million procured for resale for the              six-month period ended June 30, 2005. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Net      Interest Margin Spread Analysis***

|                                                                        | **Six-month                periods****ended****June                30,** |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                        | **2006**                                                                 | **2005** |
| Student                loan yield, before floor income                      |  7.04                %                                              | 5.13                % |
| Floor                income                                                 |  0.05                %                                              | 0.31                % |
| Accreted                interest on securitizations                    |  0.06                %                                              | 0.03                % |
| Consolidation                loan rebate fees                               | (0.44)%                                                                  | (0.44)% |
| Amortization                of deferred loan origination and purchase costs | (0.55)%                                                                  | (0.40)% |
| Student                loan net yield                                       | 6.16                %                                                    | 4.63                % |
| Student                loan cost of funds                                   | (4.47)%                                                                  | (2.66)% |
| Student                loan net interest margin                        | 1.69                %                                                    | 1.97                % |

***Rate/Volume      Analysis***

|                                        | For                the three-month period ended June 30, 2006 vs. the three-month period                ended June 30, 2005      |
|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(Dollars                in millions)*      | Increase                (Decrease) Due to Change In:                                                                        |
|                                        | Volume                                                                                                                                                         | Rate | Net(1) |
| Interest                earning assets      | $                (0.3)                                                                                                                                         | $  108.5 | $                 108.2 |
| Interest                bearing liabilities | (0.5)                                                                                                                                                          | 122.6 | 122.1 |
| Net                interest income          | $  0.2                                                                                                                                          | $                (14.1) | $                (13.9) |

|   | (1) | Rate/volume variance                is allocated based on the percentage relationship of changes in                volume and changes in rate to the absolute dollar amount of changes                in each.   |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          | For                  the six-month period ended June 30, 2006 vs. the six-month period                  ended                  June 30, 2005      |
|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(Dollars                  in millions)*      | Increase                  (Decrease) Due to Change In:                                                                                       |
|                                          | Volume                                                                                                                                                                          | Rate | Net(1) |
| Interest                  earning assets      | $                  1.1                                                                                                                                                     | $  201.1 | $                   202.2 |
| Interest                  bearing liabilities | (0.4)                                                                                                                                                                           | 238.2 | 237.8 |
| Net                  interest income          | $ 1.5                                                                                                                                                                 | $                  (37.1) | $                  (35.6) |

|   | (1) | Rate/volume variance                  is allocated based on the percentage relationship of changes in                  volume and changes in rate to the absolute dollar amount of changes                  in each.   |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Special        Allowance and Floor Income***

***Net          Interest Margin Spread***
** **
***Analysis***

|                                      | **For                the three months**** ended****June                30,**   | **For                the six months****ended****June                30,**  |
|-------------------------------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| *(Dollars                in millions)*    | **2006**                                                                                      | **2005**                                                                        | **2006 ** | **2005**  |
| Floor                income               | $    1.8                                                                  | $                 17.8                                                     |  $                   5.9  |  $                  40.2   |
| Other                interest income, net |                  113.4                                                                   |                  111.3                                                     | $216.4  |                   217.7  |
| Net                interest income        | $115.2                                                                                        | $129.1                                                                          | $222.3  | $257.9  |

***Loans***

**Regulatory          Impacts**

| *(Dollars                      in**thousands)*                                               | SecondQuarter                      2006 | FirstQuarter2006 | Fourth                      Quarter2005 | Third                      Quarter2005 | Second                      Quarter                      2005 |
|----------------------------------------------------------------------------------------------|-----------------------------------------|------------------|-----------------------------------------|----------------------------------------|---------------------------------------------------------------|
| **Balance                      at beginning of period**                                      |                                    |             |                                    |                                   |                                                          |
| FFEL                      Program                                                            | $4,245                                  | $1,993           | $2,003                                  | $1,338                                 | $1,602                                                        |
| CitiAssist                                                                                   | 5,142                                   | 2,997            | 2,662                                   | 3,327                                  | 2,744                                                         |
|                                                                                         | 9,387                                   | 4,990            | 4,665                                   | 4,665                                  | 4,346                                                         |
| **Provision                      for loan losses**                                           |                                    |             |                                    |                                   |                                                          |
| FFEL                      Program                                                            | 1,149                                   | 2,401            | 1,335                                   | 1,354                                  | 919                                                           |
| CitiAssist                                                                                   | 4,152                                   | 3,739            | 3,994                                   | 1,073                                  | 3,880                                                         |
|                                                                                         | 5,301                                   | 6,140            | 5,329                                   | 2,427                                  | 4,799                                                         |
| **Charge                      offs**                                                         |                                    |             |                                    |                                   |                                                          |
| FFEL                      Program                                                            | 124                                     | (154)            | (1,348)                                 | (691)                                  | (1,184)                                                       |
| CitiAssist                                                                                   | (5,293)                                 | (2,006)          | (3,818)                                 | (2,001)                                | (3,511)                                                       |
|                                                                                         | (5,169)                                 | (2,160)          | (5,166)                                 | (2,692)                                | (4,695)                                                       |
| **Recoveries**                                                                               |                                    |             |                                    |                                   |                                                          |
| FFEL                      Program                                                            | 1                                       | 5                | 3                                       | 2                                      | 1                                                             |
| CitiAssist                                                                                   | 416                                     | 412              | 159                                     | 263                                    | 214                                                           |
|                                                                                         | 417                                     | 417              | 162                                     | 265                                    | 215                                                           |
| **Balance                      at end of period**FFEL                      ProgramCitiAssist |  5,5194,417                        |  4,2455,142 |  1,9932,997                        | 2,0032,662                             | 1,3383,327                                                    |
|                                                                                         | 9,936                                   | $9,387           | $4,990                                  | $4,665                                 | $4,665                                                        |

***Private        Education Loans in Repayment***

|                                               |                     June 30, 2006   |                    December 31, 2005 |
|----------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------|
| *(Dollars                in millions)*             | Amount                                                            | %                                                   | Amount | % |
| Insured                CitiAssist Loans            | $2,225                                                            |                  84%                           | $2,081 |                  82% |
| Uninsured                CitiAssist Loans          |    432                                             |                  16%                           |                      461  |                  18% |
| Total                CitiAssist Loans in repayment | $2,657                                                            | 100%                                                | $2,542 | 100% |

*** ***

***Interest        Rate Derivative Agreements***

***Other        Liabilities***

***Borrowings***

***Dividends***

***Sources      and Uses of Cash***

**Results      of Operations**

|                                                                                                             | **For                      the three months**** ended                      June 30,** | **For                      the six months****ended                      June 30,** |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| *(Dollars                      in millions)*                                                                     | **2006**                                                                                   | **2005**                                                                           | **2006** | **2005** |
| Net                      interest margin                                                                         | 1.70%                                                                                      | 1.92%                                                                              | 1.69% | 1.97% |
| Total                      operating expenses as a percent of average managed student                      loans |  0.50%                                                                                |  0.56%                                                                        |  0.49% |  0.49% |
| Return                      on average equity                                                                    | 28.9%                                                                                      | 26.8%                                                                              | 21.4% | 24.9% |

**Quarter        Ended June 30, 2006**

***Net        income***

***Net        interest income***

***Special          Allowance and Floor Income***

***Gain          on loans securitized***

***Gains          on loan sales***

***Fee          and other income/loss***

***Operating          expenses***

***Loan          losses***

***Return          on Average Equity***

***Effect        of Taxes***

**Six        Months Ended June 30, 2006 **

***Net          income***

***Net          interest income***

***Special          Allowance and Floor Income***

***Gain          on          loans securitized***

***Gains          on loan sales***

***Fee          and other income/loss***

***Operating          expenses***

***Loan          losses***

***Return          on Average Equity***

***Effect          of Taxes***

**Regulatory            Impacts**

| ·                           | Stafford                        Loans disbursed on or after July 1, 2006 have a fixed interest                        rate of                        6.80%, in contrast to loansdisbursed                        prior to July 1, 2006 which have a variable rate. |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | Stafford                        Loan limits, which previously were $2,625 for freshman and                        $3,500 for                        sophomores, will increase to $3,500                        for freshmen and $4,500 for sophomores, effective July 1,                        2007, with                        aggregate Stafford Loan limitsremaining                        unchanged. Stafford Loan limits for third- and fourth-year                        undergraduate students remain at $5,500.                        Effective July 1, 2007, unsubsidized Stafford Loan limits                        which previously                        were $10,000 for graduate                        and professional students increased                        to $12,000 per year, with aggregate limits remainingunchanged. |
|------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | PLUS                        Loans disbursed on or after July 1, 2006 have a fixed interest rate                        of 8.50%, while loans disbursed                        prior to July 1, 2006 had an annual variable                        rate. |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | On                        July 1, 2006, the PLUS Loan program was opened to qualified                        graduate and                        professional students. |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | The                        3% borrower origination fee required to be paid on Stafford                        Loans will be                        phased out over a five-year                        period starting July 1, 2006, but an additional 1% mandatory                        federal                        default fee was                        imposed                        on Stafford and PLUS Loans guaranteed on or after that date. |
|------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | Rebate                        to the Department of almost all floor income by FFEL Program                        lenders is                        required, effective April 1,2006,                        for loans for which the first disbursement of principal is                        made on or                        after April 1, 2006. |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | FFEL                        Program lender insurance was reduced from 98% to 97% for                        default claims on                        loans that donot                        fall into the Exceptional Performer category and  for                        which the first disbursement                        of                        principalis                        made on or after July 1, 2006.  |
|------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | Exceptional                        Performer designation rules are retained, with a 1% reduction in                        amounts reimbursed on Exceptional                        Performer default claims submitted on or after July 1, 2006,                        resulting in                        reimbursement of 99%                        of the claimed amount. |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | A                        new moratorium has been created for the school-as-lender                        program as of                        April 1, 2006, with the addition                        of new requirements for schools participating in the school-as-lender                        program prior to April 1, 2006. |
|------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                           | In-school                        loan consolidation and spousal loan consolidation were repealed for                        those loan applicationssubmitted on                        or after July 1, 2006.  |
|------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Forward-Looking            Statements**

| **Item                3.** | **Quantitative                and Qualitative Disclosures About Market                Risk** |
|----------------------------|----------------------------------------------------------------------------------------------|

|                                            |                        **June 30, 2006** |                       |                        **June 30, 2005** |   |
|-------------------------------------------------|-----------------------------------------------------------------------------|----------------------------|-----------------------------------------------------------------------------|--------|
| *(Dollars                in millions)*          |                                                                        | Next12                Mos. |                                                                        |   | Thereafter |   |   | Total |   |   | Next12                Mos. |   |   | Thereafter |   |   | Total |   |
| Thirty-five                basis point increase | $                                                                           | 6.9                        |                                                                        | $      | (17.6 | ) | $ | (10.7 | ) | $ | (15.3 | ) | $ | (81.2 | ) | $ | (96.5 | ) |
| Thirty-five                basis point decrease | $                                                                           | (0.7                       | )                                                                           | $      | 27.5 |   | $ | 26.8 |   | $ | 16.1 |   | $ | 81.1 |   | $ | 97.2 |   |
| One                hundred basis point increase | $                                                                           | 19.8                       |                                                                        | $      | (49.1 | ) | $ | (29.3 | ) | $ | (39.3 | ) | $ | (212.5 | ) | $ | (251.8 | ) |
| One                hundred basis point decrease | $                                                                           | 24.5                       |                                                                        | $      | 91.7 |   | $ | 116.2 |   | $ | 82.0 |   | $ | 229.5 |   | $ | 311.5 |   |

| **Item                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

|   | **(a)** | **Disclosure                Controls and Procedures** |
|--------|---------|-------------------------------------------------------|

|   | **(b)** | **Internal                Control Over Financial                Reporting** |
|--------|---------|-----------------------------------------------------------------------------|

**PART      II. OTHER INFORMATION**

**Item        1A. Risk Factors**

**Item        4. Submission of Matters to a Vote of Security Holders**

| **Item                  6.** | **Exhibits** |
|------------------------------|--------------|

|   | The                Student Loan Corporation |                                                                                              |
|--------|---------------------------------------------|---------------------------------------------------------------------------------------------------|
|   |                                        |                                                                                              |   |
|   |                                        |                                                                                              |   |
|   |                                        |                                                                                              |   |
|   |                                        |                                                                                              |   |
|   |                                        |                                                                                              |   |
|   | By                                          | /s/                Daniel P. McHugh                                      |   |
|   |                                        | Daniel                P. McHughChief                Financial Officer and Duly Authorized Officer |
|   |                                        | (Principal                Financial Officer)                                                      |

**EXHIBIT        INDEX**

**Exhibit        **

| **Number** | **Description                  of Exhibit** |
|------------|---------------------------------------------|

| 3.1 | Restated                  Certificate of Incorporation of the Company, incorporated by reference                  to                  Exhibit 3.1 to the                  Company’s 1992 Annual Report on Form 10-K (File No.                  1-11616). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | By-Laws                  of the Company, as amended, incorporated by reference to Exhibit                  3.2 to                  the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended                  September 30, 1993 (File No.                  1-11616). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Trust                  Agreement, dated as of December 21, 1992, between the Company and                  CNYS,                  incorporated by                  reference to Exhibit 10.2 to the Company’s 1992 Annual Report on Form 10-K                  (File No. 1-11616). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.1 | Non-Competition                  Agreement, dated as of December 22, 1992, among the Company, CNYS                  and                  Citicorp,                  incorporated by reference to Exhibit 10.4 to the Company’s 1992 Annual                  Report on Form 10-K (File No.                  1-11616). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.2 | Amendment                  No. 1, dated as of June 22, 2000, to Non-Competition Agreement                  among the                  Company, CNYS and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.2 to the Company’s 2001 Annual Report on Form 10-K (File No.                  1-11616). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.3 | Amendment                  No. 2, dated as of June 22, 2001, to Non-Competition Agreement                  among the                  Company, CNYS and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.3 to the Company’s 2001 Annual Report on Form 10-K (File No.                  1-11616). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.4 | Amendment                  No. 3, dated as of May 5, 2002, to Non-Competition Agreement among                  the                  Company, CNYS and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal                  quarter ended June 30, 2004 (File No.                  1-11616). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.5 | Amendment                  No. 4, dated as of June 22, 2003, to Non-Competition Agreement                  among the                  Company, CNYS and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.5 to the Company’s Quarterly Report on Form 10-Q for the fiscal                  quarter ended June 30, 2004 (File No.                  1-11616). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.6 | Amendment                  No. 5, dated as of June 22, 2004, to Non-Competition Agreement                  among the                  Company, CBNA and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.6 to the Company’s Quarterly Report on Form 10-Q for the fiscal                  quarter ended June 30, 2004 (File No.                  1-11616). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.7 | Amendment                  No. 6, dated as of June 22, 2005, to Non-Competition Agreement                  among the                  Company, CBNA and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.7 to the Company’s Quarterly Report on Form 10-Q for the fiscal                  quarter ended June 30, 2005 (File No. 1-11616). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.8 | Amendment                  No. 7, dated as of June 22, 2006, to Non-Competition Agreement                  among the                  Company, CBNA and Citigroup Inc., incorporated by reference to                  Exhibit                  10.2.8 to the Company’s Quarterly Report on Form 10-Q for the fiscal                  quarter ended March 31, 2006 (File No.                  1-11616). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Tax                  Agreement, dated as of December 22, 1992, between the Company and                  CNYS,                  incorporated by                  reference to Exhibit 10.5 to the Company’s 1992 Annual Report on Form 10-K                  (File No. 1-11616). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Omnibus                  Credit Agreement, dated November 30, 2000, between the Company                  and CNYS,                  incorporated                  by reference to Exhibit 10.10 to the Company’s 2000 Annual Report on Form                  10-K                  (File No. 1-11616). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4.1 | Amendment                  No. 1, dated as of October 15, 2002, to Omnibus Credit Agreement                  between                  the Company and                  CNYS, incorporated by reference to Exhibit 10.4.1 to the Company’s 2002                  Annual Report on Form 10-K (File No. 1-11616). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4.2 | Amendment                  No. 2, dated as of March 5, 2004, to Omnibus Credit Agreement between                  the                  Company and CBNA (as successor to CNYS), incorporated by reference                  to                  Exhibit 10.4.2 to the Company’s 2003 Annual Report on Form 10-K (File No.                  1-11616). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4.3 | Amendment                  No. 3, dated as of January 20, 2005, to Omnibus Credit Agreement                  between                  the Company and CBNA (as successor to CNYS), incorporated by reference                  to                  Exhibit 10.4.3 to the Current Report on Form 8-K filed January                  24, 2005                  (File No. 1-11616). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Facilities                  Occupancy, Management and Support Service Agreement, dated as of                  January                  1, 1998, by and between the Company, CNYS and Citicorp North America,                  Inc., incorporated by reference to Exhibit 10.5 to the Company’s 2001                  Annual Report on Form 10-K (File No.                  1-11616). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Retention                  Agreement for Sue F. Roberts, dated April 28, 2003, incorporated                  by                  reference to Exhibit 10.6 to the                  Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March                  31, 2004 (File                  No. 1-11616). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6.1 | Letter                  Agreement, dated as of February 11, 2005, by and between the Company                  and                  Sue F. Roberts, incorporated by reference to Exhibit 10.6.1 to                  the                  Company’s 2004 Annual Report on Form 10-K (File No.                  1-11616). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Amended                  and Restated Agreement for Education Loan Servicing among the Company,                  Citibank USA, N.A. and Citibank, N.A., incorporated by reference                  to                  Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the fiscal                  quarter ended September 30, 2004 (File No.                  1-11616). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1                  * | Certification                  of Principal Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002. |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2                  * | Certification                  of Principal Financial Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002. |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1                  * | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to 18                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002. |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|