**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 March 31, 2007**                                                                          |   |
|       |                                                                                                                                      |   |
|       | **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-Month Periods Ended                March                31, 2007 and 2006                 | 3 |
|                         |                                              |                                                                                                                                                                |   |
|                         |                                              | Consolidated                Balance Sheet as of March 31, 2007 (Unaudited) and December 31, 2006                                                                    | 4 |
|                         |                                              |                                                                                                                                                                |   |
|                         |                                              | Consolidated                Statement of Cash Flows (Unaudited) for the Three-Month Periods Ended                March 31, 2007 and 2006                            | 5 |
|                         |                                              |                                                                                                                                                                |   |
|                         |                                              | Consolidated                Statement of Changes in Stockholders’ Equity (Unaudited) for the                Three-Month Periods Ended March 31, 2007 and 2006 | 6 |
|                         |                                              |                                                                                                                                                                |   |
|                         |                                              | Notes                to Consolidated Financial Statements (Unaudited)                                                                                               | 7                -                17 |
|                         |                                              |                                                                                                                                                                |   |
|                         | Item                2 -                           | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                           | 18                -                25 |
|                         |                                              |                                                                                                                                                                |   |
|                         | Item                3 -                           | Quantitative                and Qualitative Disclosures About Market Risk                                                                                           | 25 |
|                         |                                              |                                                                                                                                                                |   |
|                         | Item                4 -                           | Controls                and Procedures                                                                                                                              | 26 |
|                         |                                              |                                                                                                                                                                |   |
| Part                II       | Other                Information                  |                                                                                                                                                                |
|                         |                                              |                                                                                                                                                                |   |
|                         | Item                1A-                           | Risk                Factors                                                                                                                                         | 27 |
|                         |                                              |                                                                                                                                                                |   |
|                         | Item                4 -                           | Submission                of Matters to a Vote of Security Holders                                                                                                  | 27 |
|                         |                                              |                                                                                                                                                                |   |
|                         | Item                6 -                           | Exhibits                                                                                                                                                            | 27 |
|                         |                                              |                                                                                                                                                                |   |
| Signature                    | 28                                                |
|                         |                                              |                                                                                                                                                                |   |
| Exhibit                Index | 29                                                |

**PART      I CONSOLIDATED FINANCIAL INFORMATION**

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

**THE      STUDENT LOAN CORPORATION**

|                                                                   | Three                months ended             |   |
|------------------------------------------------------------------------|-----------------------------------------------|--------|
|                                                                   | March                31,                      |   |
|                                                                   | 2007                                          |   | 2006 |   |
| **NET                INTEREST INCOME**                                 |                                          |   |   |   |
| Interest                income                                         | $378,647                                      |   | $                376,918 |   |
| Interest                expense                                        | 284,890                                       |   | 269,819 |   |
| **Net                interest income**                                 | 93,757                                        |   | 107,099 |   |
| Provision                for loan losses                               | (10,528)                                      |   | (6,140) |   |
| **Net                interest income after provision for loan losses** | 83,229                                        |   | 100,959 |   |
|                                                                   |                                          |   |   |   |
| **OTHER                INCOME**                                        |                                          |   |   |   |
| Gains                on loans sold                                     | 17,774                                        |   | 6,751 |   |
| Fee                and other income                                    | 14,863                                        |   | 5,149 |   |
| **Total                other income**                                  | 32,637                                        |   | 11,900 |   |
|                                                                   |                                          |   |   |   |
| **OPERATING                EXPENSES**                                  |                                          |   |   |   |
| Salaries                and employee benefits                          | 14,450                                        |   | 12,711 |   |
| Other                expenses                                          | 29,748                                        |   | 24,850 |   |
| **Total                operating expenses**                            | 44,198                                        |   | 37,561 |   |
|                                                                   |                                          |   |   |   |
| **Income                before income taxes**                          | 71,668                                        |   | 75,298 |   |
| Income                taxes                                            | 27,645                                        |   | 29,143 |   |
| **NET                INCOME**                                          | $                44,023                       |   | $                46,155 |   |
|                                                                   |                                          |   |   |   |
| **DIVIDENDS                DECLARED AND PAID**                         | $                26,000                       |   | $                21,600 |   |
|                                                                   |                                          |   |   |   |
| **BASIC                EARNINGS PER COMMON SHARE**                     | $                    2.20 |   | $                    2.31 |   |
| (based                on 20 million average shares outstanding)        |                                          |   |   |   |
|                                                                   |                                          |   |   |   |
| **DIVIDENDS                DECLARED AND PAID PER COMMON SHARE**        | $                    1.30 |   | $                    1.08 |   |

**THE      STUDENT LOAN CORPORATION**

|                                                    | March                31,                                                                                                                           |                       | December                31, |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|-----------------------------|
|                                                    |                                                                                                                                               |                       |                        | 2007 |   | 2006 |
|                                                    |                                                                                                                                               |                       |                        | (Unaudited) |   |   |
| **ASSETS**                                              |                                                                                                                                               |                       |                        |   |   |
|                                                    | Federally                insured student loans                                                                                                     | $15,744,911                |                        | $17,184,133 |
|                                                    | Private                education loans                                                                                                             | 3,848,533                  |                        | 3,072,394 |
|                                                    | Deferred                origination and premium costs                                                                                              | 650,266                    |                        | 632,872 |
|                                                    | Allowance                for loan losses                                                                                                           | (20,855)                   |                        | (14,197) |
|                                                    | Student                loans, net                                                                                                                  |                       |                        | 20,222,855 |   | 20,875,202 |
|                                                    | Other                loans and lines of credit                                                                                                     |                       |                        | 94,910 |   | 76,117 |
|                                                    | Loans                held for sale                                                                                                                 |                       |                        | 2,257,298 |   | 323,041 |
|                                                    | Cash                                                                                                                                               |                       |                        | 230,071 |   | 6,570 |
|                                                    | Residual                interests in securitized loans                                                                                             | 545,897                    |                        | 546,422 |
|                                                    | Other                assets                                                                                                                        |                       |                        | 904,000 |   | 809,251 |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
|                                                    | **Total                Assets**                                                                                                                    |                       |                        | $24,255,031 |   | $22,636,603 |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY** |                                                                                                                                               |                       |                        |
|                                                    | Short-term                borrowings, payable to principal stockholder                                                                             | $                9,800,000 |                        | $11,136,800 |
|                                                    | Long-term                borrowings, payable to principal stockholder                                                                              | 12,200,000                 |                        | 9,200,000 |
|                                                    | Deferred                income taxes                                                                                                               |                       |                        | 277,137 |   | 287,641 |
|                                                    | Other                liabilities                                                                                                                   |                       |                        | 406,561 |   | 458,861 |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
|                                                    | Total                Liabilities                                                                                                                   |                       |                        | 22,683,698 |   | 21,083,302 |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
|                                                    | Common                stock, $0.01 par value; authorized 50,000,000 shares; 20,000,000                shares                issued and outstanding | 200                        |                        | 200 |
|                                                    | Additional                paid-in capital                                                                                                          |                       | 141,333                     |   | 141,324 |
|                                                    | Retained                earnings                                                                                                                   | 1,429,800                  |                        | 1,410,968 |
|                                                    | Accumulated                other changes in equity from nonowner sources                                                                           | -                          |                        | 809 |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
|                                                    | Total                Stockholders' Equity                                                                                                          |                       | 1,571,333                   |   | 1,553,301 |
|                                                    |                                                                                                                                               |                       |                        |   |   |   |
|                                                    | **Total                Liabilities and Stockholders' Equity**                                                                                      | $24,255,031                |                        | $22,636,603 |

**THE      STUDENT LOAN CORPORATION**

|                                                                                                     |                                                                                                  |                          |                                                     |                          | Three                months ended |
|----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------|----------------------------------------------------------|-------------------------------|-----------------------------------|
|                                                                                                     |                                                                                                  |                          |                                                     |                          | March                31,          |
|                                                                                                     |                                                                                                  |                          |                                                     |                          | 2007                              |   | 2006 |
| Cash                flows from operating activities:                                                     |                                                                                                  |                          |                                                     |                          |
| Net                income                                                                                | $                44,023                                                                               |                          | $                46,155                                  |
| Adjustments                to reconcile net income to net cash from operating                activities: |                                                                                                  |                          |                                                     |
|                                                                                                     | Depreciation                and amortization of equipment and computer software                       | 3,533                         |                                                     | 3,226                         |
|                                                                                                     | Amortization                of deferred loan origination and purchase costs                           | 27,949                        |                                                     | 37,422                        |
|                                                                                                     | Accreted                interest on residual interests                                                | (14,383)                      |                                                     | (4,474)                       |
|                                                                                                     | Provision                for loan losses                                                              | 10,528                        |                                                     | 6,140                         |
|                                                                                                     | Deferred                tax provision                                                                 | (10,504)                      |                                                     | (10,539)                      |
|                                                                                                     | Gains                on loans sold                                                                    | (17,774)                      |                                                     | (6,751)                       |
|                                                                                                     | Loss                on valuation of residual interests designated as trading                          | 1,778                         |                                                     | 4,944                         |
|                                                                                                     | Loss                on valuation of servicing assets                                                  | 4,867                         |                                                     | 3,242                         |
|                                                                                                     | Disbursements                and procurements of loans for resale                                     | (118,276)                     |                                                     | (8,658)                       |
|                                                                                                     | Proceeds                from loans sold                                                               | 59,678                        |                                                     | -                             |
|                                                                                                     | Cash                received on residual interests in trading securitized                assets       | 13,130                        |                                                     | -                             |
|                                                                                                     | Impairment                loss on retained interests                                                  | -                             |                                                     | 685                           |
|                                                                                                     | Change                in accrued interest receivable                                                  | (87,523)                      |                                                     | (62,122)                      |
|                                                                                                     | Change                in other assets                                                                 | (13,674)                      |                                                     | (14,781)                      |
|                                                                                                     | Change                in other liabilities                                                            | (52,291)                      |                                                     | 63,893                        |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| **Net                cash (used in)/provided by operating activities**                                   | (148,939)                                                                                             |                          | 58,382                                                   |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| Cash                flows from investing activities:                                                     |                                                                                                  |                          |                                                     |
|                                                                                                     | Change                in loans                                                                        | (1,856,183)                   |                                                     | (1,250,190)                   |
|                                                                                                     | Increase                in loan origination costs and purchase premiums                               | (85,696)                      |                                                     | (65,856)                      |
|                                                                                                     | Proceeds                from loans sold                                                               | 679,071                       |                                                     | 223,479                       |
|                                                                                                     | Capital                expenditures on equipment and computer software                                | (1,952)                       |                                                     | (2,650)                       |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| **Net                cash used in investing activities**                                                 | (1,264,760)                                                                                           |                          | (1,095,217)                                              |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| Cash                flows from financing activities:                                                     |                                                                                                  |                          |                                                     |
|                                                                                                     | Net                increase in borrowings with original maturities of one year or                less | 663,200                       |                                                     | 1,057,800                     |
|                                                                                                     | Proceeds                from borrowings with original terms of one year or more                       | 3,000,000                     |                                                     | -                             |
|                                                                                                     | Repayments                of borrowings with original terms of one year or more                       | (2,000,000)                   |                                                     | -                             |
|                                                                                                     | Dividends                paid to stockholders                                                         | (26,000)                      |                                                     | (21,600)                      |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| **Net                cash provided by financing activities**                                             | 1,637,200                                                                                             |                          | 1,036,200                                                |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| **Net                increase/(decrease) in cash**                                                       | 223,501                                                                                               |                          | (635)                                                    |
| **Cash                - beginning of period**                                                            | 6,570                                                                                                 |                          | 1,152                                                    |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| **Cash                - end of period**                                                                  | $230,071                                                                                              |                          | $                      517 |
|                                                                                                     |                                                                                                  |                          |                                                     |                          |                              |   |   |
| **Supplemental                disclosure:**                                                              |                                                                                                  |                          |                                                     |
|                                                                                                     | Cash                paid for:                                                                         |                          |                                                     |                          |
|                                                                                                     | Interest                                                                                              | $270,566                      |                                                     | $254,022                      |
|                                                                                                     | Income                taxes, net                                                                      | $                 57,040 |                                                     | $                 26,506 |

**THE      STUDENT LOAN CORPORATION**

|                                                                         |                                                                                                                                                         | Three                months ended March 31,                                                            |
|------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
|                                                                         |                                                                                                                                                         | 2007                                                                                                   |   | 2006 |
| **COMMON                STOCK AND ADDITIONAL PAID-IN CAPITAL**               |                                                                                                                                                         |                                                                                                   |   |
|                                                                         | Balance,                beginning of period                                                                                                                  | $                  141,524                                                                   |   | $                  139,583 |
|                                                                         | Capital                contributions and other changes                                                                                                       | 9                                                                                                      |   | 1,892 |
|                                                                         | Balance,                end of period                                                                                                                        | $                  141,533                                                                   |   | $                  141,475 |
|                                                                         |                                                                                                                                                         |                                                                                                   |   |   |
| **RETAINED                EARNINGS**                                         |                                                                                                                                                         |                                                                                                   |   |
|                                                                         | Balance,                beginning of period                                                                                                                  | $1,410,968                                                                                             |   | $1,222,262 |
|                                                                         | Cumulative                effect of adoption of accounting standard, net of taxes $506 and                $941 in                2007 and 2006, respectively | 809                                                                                                    |   | 1,494 |
|                                                                         | Net                income                                                                                                                                    | 44,023                                                                                                 |   | 46,155 |
|                                                                         | Common                dividends declared, $1.30 per common share in 2007 and $1.08 per                common                share in 2006                    | (26,000)                                                                                               |   | (21,600) |
|                                                                         | Balance,                end of period                                                                                                                        | $1,429,800                                                                                             |   | $1,248,311 |
|                                                                         |                                                                                                                                                         |                                                                                                   |   |   |
| **ACCUMULATED                OTHER CHANGES IN EQUITY FROM NONOWNER SOURCES** |                                                                                                                                                         |                                                                                                   |   |
|                                                                         | Balance,                beginning of period                                                                                                                  | $                         809                             |   | $                             - |
|                                                                         | Cumulative                effect of adoption of accounting standard, net of taxes of                $506                                                     | (809)                                                                                                  |   | - |
|                                                                         | Balance,                end of period                                                                                                                        | $                              - |   | $                             - |
|                                                                         |                                                                                                                                                         |                                                                                                   |   |   |
| **TOTAL                STOCKHOLDERS' EQUITY**                                | $1,571,333                                                                                                                                                   |                                                                                                   | $1,389,786 |

**THE      STUDENT LOAN CORPORATION**

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

**March      31, 2007**

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

**Interim      Financial Information**

** **
** **

**Use      of Estimates**

**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***

**Accumulated      other changes in equity from nonowner sources**
**,      **
*The      Fair Value Option for Financial Assets and Financial      Liabilities*

**Accumulated      other changes in equity from nonowner sources **
**      Retained earnings**
**      Fee and other income**
**Fee      and other income**
*Accounting      for Servicing of Financial Assets - an amendment of FASB statement No. 140      *
**Other      assets**
**Fee      and other income**

**Gains      on loans securitized**

**Loans      Held for Sale**

**Derivatives**

**Other      assets**
**Other      liabilities**

**Internally      Developed Software**

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

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

***Fair      Value Measurements***

*Fair      Value Measurements*

***Fair      Value Option***

*Accounting      for Derivative Instruments and Hedging Activities*
* *
**Accumulated      other changes in equity from nonowner sources**
**Retained      earnings**
**Fee      and other income **
** **

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

*Accounting      for Uncertainty in Income Taxes *

**3.                 **
**Student      **
**Loans**

|                                                              | **March                31,** | **December                31,** |
|-------------------------------------------------------------------|------------------------------|---------------------------------|
| (*Dollars                in thousands)*                           | **2007**                     | **2006**                        |
| Federal                Stafford Loans                             | $7,526,038                   | $7,192,550                      |
| Federal                Consolidation Loans                        | 7,219,888                    | 9,118,615                       |
| Federal                SLS/PLUS/HEAL Loans                        | 998,985                      | 872,968                         |
| Private                education loans                            | 3,848,533                    | 3,072,394                       |
| Total                student loans held, excluding deferred costs | 19,593,444                   | 20,256,527                      |
| Deferred                origination and premium costs             | 650,266                      | 632,872                         |
| Student                loans held                                 | 20,243,710                   | 20,889,399                      |
| Less:                allowance for loan losses                    | (20,855)                     | (14,197)                        |
| **Student                loans held, net**                        | 20,222,855                   | 20,875,202                      |
| Loans                held for sale, excluding deferred costs      | 2,222,589                    | 315,927                         |
| Deferred                origination and premium costs             | 34,709                       | 7,114                           |
| **Loans                held for sale**                            | 2,257,298                    | 323,041                         |
| **Other                loans and lines of credit**                | 94,910                       | 76,117                          |
| **Total                loan assets**                              | $22,575,063                  | $21,274,360                     |

**4.           **
**Other      Assets**

| (*Dollars                in thousands*)                     | **March                31,****2007** | **December                31,****2006** |
|-------------------------------------------------------------|--------------------------------------|-----------------------------------------|
| Accrued                interest receivable                  |                                 |                                    |
| from                student loan borrowers/others           | $                523,184             | $440,992                                |
| from                federal government                      | 132,260                              | 126,929                                 |
| Servicing                asset from securitization activity | 164,367                              | 169,234                                 |
| Equipment                and computer software(1)           | 40,842                               | 42,423                                  |
| Other                                                       | 43,347                               | 29,673                                  |
| **Total                other assets**                       | $904,000                             | $809,251                                |

|   | (1) | Amounts                are reflected net of accumulated depreciation and amortization of                $42                million and $44 million at March 31, 2007 and December 31, 2006,                respectively. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**5.      **
**Fee      and Other Income**

| (*Dollars                in thousands*)                                 | **Three                months ended****March                31,**  |
|-------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                                                    | **2007**                                                           | ** 2006** |
| Losses                related to residual interests                     | $                (1,778)        | $                (5,629)          |
| Servicing                revenue and losses related to servicing assets | 11,636                          | 3,638                         |
| Mark-to-market                gains on derivatives                      | 258                             | 2,877                         |
| Other                origination and servicing fees                     | 2,061                           | 1,870                         |
| Late                fees                                                | 2,032                           | 2,206                         |
| Other                                                                   | 654                             | 187                         |
| **Total                fee and other income**                           | $                14,863              | $                5,149          |

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

|  *(Dollars                in thousands)*                                                                                                         | **Three                months ended****March                31,**                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                                                                                                                                  | **2007**                                                                                     | **2006** |
| **Revenues**Interest                income                                                                                                            | $                     247        | $                     111          |
| Interest                expense                                                                                                                       | 284,886                                                   | 269,715          |
| Fee                and other income                                                                                                                   | 2,319                                                     | 4,747          |
| **Operating                Expenses**** *****Salaries                and employee benefits***Employee                benefits and administration | $                  2,713                             | $                 2,416          |
| Stock-based                compensation                                                                                                               | 855                                                       | 382          |
|  ***Other                expenses***                                                                                                             |                                                                                         |   |
| Servicing,                professional and other fees paid                                                                                            | $                11,790                                   | $                 9,858          |
| Data                processing and communications                                                                                                     | 1,522                                                     | 1,557          |
| Premises,                primarily rent                                                                                                               | 753                                                       | 736                          |
| Other                                                                                                                                                 | 768                                                       | 201                          |

*CBNA      Omnibus Credit Agreement*

*Interest      Rate Swap and Option Agreements*

*Student      Loan Origination Agreement and Servicing Fees Earned*

**Fee      and other income**

*Servicing,      Professional and Other Fees Paid*

*CBNA      Tax-sharing Agreement*

*Other      Intercompany Arrangements*

| **7.** | **Interest                Rate Derivative                Agreements** |
|--------|-----------------------------------------------------------------------|

|                                       | **March                31, 2007**                                                 | **December                31, 2006**    |
|--------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------|
|                                       |                                                                              | **Fair                Value**           |   | **Fair                Value** |
| (*Dollars                in thousands*)    | **Notional**                                                                      | **Asset**                               | **Liability** | **Notional** | **Asset** | **Liability** |
| Prime                / LIBOR Swaps         | $                          ---- | $                   ---- | $                   ----       | $                4,000,000 | $                ----      | $                  761      |
| Other                LIBOR Based Swaps     | 8,025,000                                                                         | 4,260                                   | 226       | 8,035,000 | 462      | 1,803      |
| Interest                Rate Floor Options | 6,084,299                                                                         | ----                                    | 7,914       | 6,200,000 | ----      | 9,500      |

| **8.** | **Student                Loan Securitizations** |
|--------|-------------------------------------------------|

| *(Dollars                in thousands)*                    | **March                31, 2007** | **December                31, 2006** |
|------------------------------------------------------------|-----------------------------------|--------------------------------------|
| Total                student loan assets in trusts         | $12,062,651                       | $12,375,339                          |
| Residual                interests                          | 545,897                           | 546,422                              |
| Servicing                assets                            | 164,367                           | 169,234                              |
| Receivable                from trusts for servicing        | 5,546                             | 3,950                                |
| Payable                to trusts for student loan payments | 10,044                            | 11,494                               |

| *(Dollars                in thousands)*                        | **2007                 ** | **2006 ** |
|----------------------------------------------------------------|--------------------------------|----------------|
| Cash                received from trusts for servicing         | $14,906                        | $6,433         |
| Cash                received from trusts on residual interests | 13,130                         | -              |

|                                                                      | **Three                months ended****March                31,** |
|---------------------------------------------------------------------------|-------------------------------------------------------------------|
| *(Dollars                in thousands)*                                   | **2007  **                                              | **2006  ** |
| Balance                at beginning of period                             | $546,422                                                          | $188,454 |
| Accreted                interest                                          | 14,383                                                            | 4,474 |
| Cash                flows from trusts                                     | (13,130)                                                          | - |
| Mark-to-market                losses on                residual interests | (1,778)                                                           | (4,944) |
| Residual                interest impairments                              | -                                                                 | (685) |
| **Balance                at end of period**                               | $545,897                                                          | $187,299 |

|                                                                          |  **Three                months ended March 31,** |
|-------------------------------------------------------------------------------|-------------------------------------------------------|
| *(Dollars                in thousands)*                                       | **2007  **                                  | **2006  ** |
| Balance                at beginning of period                                 | $                169,234                              | $                76,784 |
| Cumulative                effect adjustment                                   | -                                                     | 2,435 |
| Changes                in fair value due to changes in inputs and assumptions | 3,126                                                 | (1,468) |
| Other                changes                                                  | (7,993)                                               | (1,774) |
| **Balance                at end of period**                                   | $164,367                                              | $                75,977 |

**Other      changes**

|                                                                                                                                                                                                                                                          | **March                31, 2007**                 | **December                31, 2006**       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------------------------------------------|
| Weighted                average discount rate                                                                                                                                                                                                                 |                                              |                                       |
|     FFELP                Consolidation                Loans                              |                   10.2%  |  10.0%                           |
|                  Private education loans                                                                                                                                                                                                       | 12.2%                                        | 12.0%                                 |
| Constant                prepayment rates                                                                                                                                                                                                                      |                                              |                                       |
| FFELP                Consolidation Loans                                                                                                                                                                                                                      | Up                to 8.2% in 5 to 10 years        | Up                to 9.8% in 5 to 10 years |
| Private                education loans                                                                                                                                                                                                                        | 5.6%                to 20.1% over 12 years        | 4.6%                to 20.0% over 12 years |
| Anticipated                credit losses, net of insurance and guarantees                                                                                                                                                                                     |                                              |                                       |
| FFELP                Consolidation Loans                                                                                                                                                                                                                      | 0.11%                                             | 0.11%                                      |
| Private                education loans                                                                                                                                                                                                                        | 1.10%                                             | 1.10%                                      |
| Basis                spread between LIBOR and Commercial Paper rate                                                                                                                                                                                           | 0.11%                                             | 0.11%                                      |
| Utilization                rate of borrower benefits:                                                                                                                                                                                                         |                                              |                                       |
| Automated                clearing house                                                                                                                                                                                                                       | 17.8%                to 40.1%                     | 17.5%                to 39.8%              |
| On                time payments                                                                                                                                                                                                                               | 15.6%                to 38.5%                     | 14.5%                to 36.5%              |

|                                                               | **March                31, 2007   ** | **December                31, 2006**       |
|--------------------------------------------------------------------|-----------------------------------------------------|--------------------------------------------|
| Weighted                average discount rate                      |                                                     |                                       |
|                  FFELP Consolidation Loans          |                     6.1%        | 6.0%                                       |
|     Private              education loans  | 6.6%                                                | 6.5%                                       |
| Constant                prepayment rates                           |                                                |                                       |
| FFELP                Consolidation Loans                           | Up                to 8.2% in 5 to 10 years          | Up                to 9.8% in 5 to 10 years |
| Private                education loans                             | 5.6%                to 20.1% over 12 years          | 4.6%                to 20.0% over 12 years |
| Servicing                margin                                    | 25                basis points                      | 25                basis points             |

| *(Dollars                in thousands)*               | **Residual                Interests** | **Servicing                Assets** |
|-------------------------------------------------------|---------------------------------------|-------------------------------------|
| Fair                value at March 31, 2007           | $                545,897              | $                164,367            |
| Discount                rate                          |                                  |                                |
| 10%                adverse change                     | $                (21,502)             | $                (3,646)            |
| 20%                adverse change                     | $                (41,449)             | $                (7,139)            |
| Constant                prepayment rate               |                                  |                                |
| 10%                adverse change                     | $                (10,226)             | $                (2,957)            |
| 20%                adverse change                     | $                (20,335)             | $                (5,895)            |
| Anticipated                net credit losses/defaults |                                  |                                |
| 10%                adverse change                     | $                (4,033)              | $                (701)              |
| 20%                adverse change                     | $                (8,561)              | $                (1,512)            |
| Servicing                margin                       |                                  |                                |
| 10%                adverse change                     | -                                     | $                (15,867)           |
| 20%                adverse change                     | -                                     | $                (31,978)           |
| Basis                spread                           |                                  | -                                   |
| 10%                adverse change                     | $                (4,381)              | -                                   |
| 20%                adverse change                     | $                (8,806)              | -                                   |
| Borrower                benefits - ACH                |                                  | -                                   |
| 10%                adverse change                     | $                (2,818)              | -                                   |
| 20%                adverse change                     | $                (5,861)              | -                                   |
| Borrower                benefits - on time payments   |                                  | -                                   |
| 10%                adverse change                     | $                (7,639)              | -                                   |
| 20%                adverse change                     | $                (15,531)             | -                                   |

| **9.** | **Fair                Value** |
|--------|-------------------------------|

| ·   | Level                1 - Quoted prices for *identical*                instruments in active markets. |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Level                2 - Quoted prices for *similar*                instruments in active market, quoted prices for identical or similar                instruments in markets that are not active; and, model derived valuations                whose inputs are observable or whose primary value drivers are                observable. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level                3 - Instruments whose primary value drivers are *unobservable*. |
|--------------------|--------------------------------------------------------------------------------------|

| *(Dollars                in Thousands)*                | **Level                2**                                                                                   | **Level                3**                                                                                                           |
|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| **Assets**                                             |                                                                                                         |                                                                                                                                 |
| Residual                interests in securitized loans | $                       -         | $545,897                                                                                     |
| Other                assets                            | 4,260                                                                | 164,367                                                                                      |
|  **Total                Assets**                  | $4,260                                                               | $710,264                                                                                     |
|                                                   |                                                                                                         |                                                                                                                                 |
| **Liabilities**                                        |                                                                                                         |                                                                                                                                 |
| Other                liabilities                       | $8,140                                                               | $                           -         |

**Derivatives**

**Other      assets**
**Other      liabilities**

**Retained      Interests in Securitized Loans **

**Other      assets**

| *(Dollars                in Thousands)*           | **Residual                Interests in Securitized Loans** | **Other                Assets** |
|---------------------------------------------------|------------------------------------------------------------|---------------------------------|
| Balance                at December 31, 2006       | $546,422                                                   | $169,234                        |
| Net                unrealized gains(1)            | 12,605                                                     | 5,691                           |
| Transfers                in and/or out of Level 3 | -                                                          | (10,558)                        |
| Settlements                                       | (13,130)                                                   | -                               |
| **Balance                at March 31, 2007**      | $545,897                                                   | $164,367                        |

**Interest income **
**Fee and other income **

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

| **11.** | **Commitments                and Contingencies** |
|---------|--------------------------------------------------|

| **12.** | **Future                Application of Accounting                Standards** |
|---------|------------------------------------------------------------------------------|

***Potential      Amendments to Various Current Accounting Standards***

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

**Forward-Looking      Statements**

**Business      Overview**

**Critical      Accounting Estimates**

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

**Financial      Condition**

***Loans***

| *(Dollars                in millions)*              | **March                31,**** 2007** | **December                31,****2006** |
|-----------------------------------------------------|--------------------------------------------|-----------------------------------------|
| Average                owned loans (year to date)   | $22,464                                    | $25,355                                 |
| Owned                loans at end of period         |                  22,596               |                  21,289            |
| Average                managed loans (year to date) |                  34,681               |                  32,403            |
| Managed                loans at end of period       |                  34,659               |                  33,664            |

***Loan      Disbursement and Procurement Activity***

| *(Dollars                in millions)*                                       | **2007**     | **2006**               | **Difference**                                | **%                Change** |
|------------------------------------------------------------------------------|--------------|------------------------|-----------------------------------------------|-----------------------------|
| FFEL                Program Stafford and PLUS Loan disbursements             | $1,490       | $                1,276 | $                214      | 17%     |
| CitiAssist                Loans disbursed under commitments to purchase, net | 712(1)       | 619(1)                 | 93                        | 15%     |
| **Total**                                                                    | $2,202  | $                1,895 | $                307      | 16%     |

| *(Dollars                in millions)*           | **2007                    **   | **2006                   **   | **Difference** | **%                Change** |
|--------------------------------------------------|----------------------------------------------------|----------------------------------------------|----------------|-----------------------------|
| Consolidation                Loan volume         | $                471      | $                906     | $(435)         | (48)%                       |
| Other                FFEL Program loan purchases | 117                            | 87                       | 30             | 34%                         |
| **Total**                                        | $                588 (1)                      | $                993(2)                      | $(405)         | (41)%                       |

|   | (1) | Amount                includes $271 million of loans purchased through third-party purchase                agreements. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amount                includes $276 million of loans purchased through third-party purchase                agreements. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

***Allowance      for loan losses***

**Regulatory      Impacts**

|                                                                             | **Three                Months Ended March 31,** |
|----------------------------------------------------------------------------------|-------------------------------------------------|
| *(Dollars                in thousands)*                                          | **2007**                                        | **2006** |
|                                                                             |                                            |   |
| **Balance                at beginning of period**                                |                                            |   |
| FFEL                Program                                                      | $                 6,911                    | $1,993 |
| CitiAssist                                                                       | 7,286                                           | 2,997 |
|                                                                             | 14,197                                          | 4,990 |
| **Provision                for loan losses**                                     |                                            |   |
| FFEL                Program                                                      | 3,824                                           | 2,401 |
| CitiAssist                                                                       | 6,704                                           | 3,739 |
|                                                                             | 10,528                                          | 6,140 |
| **Charge                offs**                                                   |                                            |   |
| FFEL                Program                                                      | (1,198)                                         | (154) |
| CitiAssist                                                                       | (3,991)                                         | (2,006) |
|                                                                             | (5,189)                                         | (2,160) |
| **Recoveries**                                                                   |                                            |   |
| FFEL                Program                                                      | -                                               | 5 |
| CitiAssist                                                                       | 1,319                                           | 412 |
|                                                                             | 1,319                                           | 417 |
| **Balance                at end of period**FFEL                ProgramCitiAssist |  9,53711,318                               |  4,2455,142 |
|                                                                             | $20,855                                         | $9,387 |

***Private      Education Loans in Repayment***

|                                                                                                                                     | **                       March 31,** | **                      December 31,** |
|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------------|
| *(Dollars                in thousands)*                                                                                                  | **                       2007**      | **                      2006**         |
| Total                private education loans                                                                                             | $3,848,533                                                              | $3,072,394                                                           |
| Private                education loans in repayment                                                                                      | $1,189,211                                                              | $1,156,184                                                           |
| Private                education loans in forbearance                                                                                    | $                  139,643                                    | $                    81,761                      |
| Private                education loans delinquent 30 - 89 days as a % of total private education                loans in repayment       | 2.6%                                                                    | 2.6%                                                                 |
| Private                education loans delinquent 90 days or greater as a % of total private                education loans in repayment | 1.8%                                                                    | 2.6%                                                                 |
| Allowance                for loan losses for private education loans                                                                     | $     11,318                                   | $                      7,286           |
| Total                private education loans insured by third parties                                                                    | $3,140,603                                                              | $2,410,142                                                           |
| Total                uninsured private education loans                                                                                   | $                  707,930                                    | $                  662,252                                 |

***Sources      and Uses of Cash***

**Results      of Operations**

***Factors      Affecting Net Interest Income***

*Net      Interest Margin Spread Analysis*

|                                                                        | **Three                months ended**** March                31,** |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                                        | **2007**                                                                | **2006** |
| Student                loan yield                                           | 7.35                %                     | 6.81                %        |
| Consolidation                loan rebate fees                               | (0.44)%                                   | (0.44)%                       |
| Accreted                interest on residual interests                      | 0.25%                                     | 0.08                %        |
| Amortization                of deferred loan origination and purchase costs | (0.49)%                                   | (0.58)%                       |
| Net                yield                                                    | 6.67                %                     | 5.87                %        |
| Cost                of funds                                                | (5.02)%                                   | (4.20)%                       |
| **Net                interest margin**                                      | 1.65                %                     | 1.67                %        |

**Regulatory      Impacts**

*Rate/Volume      Analysis*

|                                        | **For                the three months ended March 31, 2007 vs. the three months ended                March 31,                2006** |
|---------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                        | **Increase                (decrease) due to change in:**                                                                             |
| *(Dollars                in millions)*      | **Volume**                                                                                                                           | **Rate** | **Net** |
| Interest                earning assets      | $                (44)                                                                                                                | $                46 |  $                   2   |
| Interest                bearing liabilities |                  34                                                                                                             |                  (49) |                  (15) |
| **Net                interest income**      | $                (10)                                                                                                                | $                (3) | $(13) |

***Quarter      Ended March 31, 2007***

*Net      interest income*

**Factors      Affecting Net Interest Income**

*Gains      on loans sold*

*Fee      and other income*

*Operating      expenses*

*Provision      for loan losses*

*Income      taxes*

**Regulatory      Impacts**

***Changes      to the FFEL Program***

| ·   | The                subsidized Stafford Loan interest rate will be reduced from 6.80%                to 3.40%                by phasing in the reduction between July 1, 2007 and July 1,                2011. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Eliminates                the Exceptional Performer status for lenders effective July 1,                2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Reduces                lender insurance from 97% to 95% for loans disbursed on or after                July 1,                2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increases                lender fees for loans first disbursed on or after July 1, 2007, from                0.50%                to 1.00%. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increases                the annual interest payment rebate fee on Consolidation Loans for                applications received on or after July 1, 2007, from 1.05% to 1.30%.                This                reduction applies only if 90% or more of the lender’s holdings are in                Consolidation Loans. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduces                SAP by 0.10% for loans first disbursed on or after July 1, 2007,                for                lenders that, as a group, hold 90% of the total principal amount                of all                FFELP loan volume. Other lenders, designated by the Department as                small                lenders, would be exempt from this                reduction. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Inquiries      into the Student Loan Industry by Congress and State Attorneys      General***

**Off-Balance      Sheet Arrangements**

| *(Dollars                in millions)*                             | **March                31, 2007** |   | **December                31, 2006** |
|--------------------------------------------------------------------|-----------------------------------|--------|--------------------------------------|
| Total                student loan assets in trusts                 | $12,063                           |   | $12,375                              |
| Residual                interests                                  | 546                               |   | 546                                  |
| Servicing                assets                                    | 164                               |   | 169                                  |
| Amounts                receivable from trusts for servicing        | 6                                 |   | 4                                    |
| Amounts                payable to trusts for student loan payments | 10                                |   | 12                                   |

**Sources      and Uses of Cash**

**Forward-Looking      Statements**

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

|                                   | **March                31** |
|----------------------------------------|-----------------------------|
|                                   | **2007**                    | **2006** |
| *(Dollars                in millions)* | Increase                    | Decrease | Increase | Decrease |
| 35                basis points         | $                5.9        | $                2.0 | $                2.1 | $(1.5) |
| 100                basis points        | 17.1                        | 16.5 | 16.9 | 21.4 |

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

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

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

**PART      II. OTHER INFORMATION**

**Item      1A. Risk Factors**

**Forward-Looking      Statements**

**Regulatory      considerations**

**Regulatory      Impacts**

**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 1994 Annual Report on Form 10-K (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. |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|