| (Mark One) |                                                                                     |   |
|------------|------------------------------------------------------------------------------------------|--------|
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|       |                                                                                     |   |
|       | For the quarterly period ended June 30, 2010                                             |   |
|       |                                                                                     |   |
|       | or                                                                                       |   |
|       |                                                                                     |   |
|  ̈     | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|       |                                                                                     |   |
|       | For the transition period from ___ to ___                                                |   |

| 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) |   |                                 |

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

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

| Large accelerated filer o                                                              |                                         | Accelerated filer                   x |
|----------------------------------------------------------------------------------------|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| Non-accelerated filer   o (Do not check if a smaller reporting company) | Smaller reporting company   o |

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

| Part I        | Consolidated Financial Information |                                                                                                                         |
|---------------|------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|          |                               |                                                                                                                         | Page |
|          | Item 1 -                           | Consolidated Financial Statements                                                                                            |   |
|          |                               |                                                                                                                         |   |
|          |                               | Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended June 30, 2010 and 2009                      | 2 |
|          |                               |                                                                                                                         |   |
|          |                               | Consolidated Balance Sheets as of June 30, 2010 (Unaudited) and December 31, 2009                                            | 3 |
|          |                               |                                                                                                                         |   |
|          |                               | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Six Months Ended June 30, 2010 and 2009 | 4 |
|          |                               |                                                                                                                         |   |
|          |                               | Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2010 and 2009                            | 5 |
|          |                               |                                                                                                                         |   |
|          |                               | Notes to Consolidated Financial Statements (Unaudited)                                                                       | 6 – 24 |
|          |                               |                                                                                                                         |   |
|          | Item 2 -                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                  | 25 – 46 |
|          |                               |                                                                                                                         |   |
|          | Item 3 -                           | Quantitative and Qualitative Disclosures About Market Risk                                                                   | 47 |
|          |                               |                                                                                                                         |   |
|          | Item 4 -                           | Controls and Procedures                                                                                                      | 47 |
|          |                               |                                                                                                                         |   |
| Part II       | Other Information                  |                                                                                                                         |
|          |                               |                                                                                                                         |   |
|          | Item 1A-                           | Risk Factors                                                                                                                 | 48 – 53 |
|          |                               |                                                                                                                         |   |
|          | Item 6 -                           | Exhibits                                                                                                                     | 53 |
|          |                               |                                                                                                                         |   |
| Signature     | 54                                 |
|          |                               |                                                                                                                         |   |
| Exhibit Index | 55                                 |

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

|                                                                        |   | Three months ended |     |   | Six months ended |   |
|-----------------------------------------------------------------------------|--------|--------------------|----------|--------|------------------|--------|
|                                                                        |   | June 30,           |     |   | June 30,         |   |
|                                                                        |   | 2010               |     |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| NET INTEREST INCOME                                                         |   |               |     |   |             |   |   |   |   |   |   |   |
| Interest income                                                             |   | $                  | 283,323  |   |             | $      | 187,224 |   |   | $ | 540,144 |   |   | $ | 391,420 |   |
| Interest expense                                                            |   |               | (188,864 | )      |             |   | (116,340 | ) |   |   | (360,712 | ) |   |   | (262,458 | ) |
| Net interest income                                                         |   |               | 94,459   |   |             |   | 70,884 |   |   |   | 179,432 |   |   |   | 128,962 |   |
| Provision for loan losses                                                   |   |               | (41,397  | )      |             |   | (44,826 | ) |   |   | (85,287 | ) |   |   | (65,968 | ) |
|     Net interest income after provision for loan losses |   |               | 53,062   |   |             |   | 26,058 |   |   |   | 94,145 |   |   |   | 62,994 |   |
|                                                                        |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME                                                                |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Gains on loans sold                                                         |   |               | –  |   |             |   | 17,864 |   |   |   | – |   |   |   | 17,864 |   |
| Fee and other income                                                        |   |               | 8,811    |   |             |   | 30,851 |   |   |   | 9,396 |   |   |   | 37,809 |   |
| Total other income                                                          |   |               | 8,811    |   |             |   | 48,715 |   |   |   | 9,396 |   |   |   | 55,673 |   |
|                                                                        |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                                          |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                              |   |               | 7,620    |   |             |   | 8,428 |   |   |   | 15,565 |   |   |   | 17,406 |   |
| Write-off of funding commitment fee paid to principal stockholder           |   |               | –  |   |             |   | – |   |   |   | 7,500 |   |   |   | – |   |
| Other expenses                                                              |   |               | 26,728   |   |             |   | 26,783 |   |   |   | 52,617 |   |   |   | 52,664 |   |
| Total operating expenses                                                    |   |               | 34,348   |   |             |   | 35,211 |   |   |   | 75,682 |   |   |   | 70,070 |   |
|                                                                        |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                  |   |               | 27,525   |   |             |   | 39,562 |   |   |   | 27,859 |   |   |   | 48,597 |   |
| Provision for income taxes                                                  |   |               | 6,704    |   |             |   | 14,300 |   |   |   | 6,579 |   |   |   | 15,813 |   |
| NET INCOME                                                                  |   | $                  | 20,821   |   |             | $      | 25,262 |   |   | $ | 21,280 |   |   | $ | 32,784 |   |
|                                                                        |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| DIVIDENDS DECLARED AND PAID                                                 |   | $                  | 7,000    |   |             | $      | 7,000 |   |   | $ | 14,000 |   |   | $ | 35,600 |   |
|                                                                        |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED EARNINGS PER COMMON SHARE                                 |   | $                  | 1.04     |   |             | $      | 1.26 |   |   | $ | 1.06 |   |   | $ | 1.64 |   |
| (based on 20,000,000 average shares outstanding)                            |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |               |     |   |             |   |   |   |   |   |   |   |   |   |   |   |
| DIVIDENDS DECLARED AND PAID PER COMMON SHARE                                |   | $                  | 0.35     |   |             | $      | 0.35 |   |   | $ | 0.70 |   |   | $ | 1.78 |   |

|                                                                                                  |   | June 30,    |       |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                                                  |   | 2010        |       |   | 2009         |   |
|                                                                                                  |   | (Unaudited) |       |   |         |   |
| ASSETS                                                                                                |   |        |       |   |         |   |
| Federally insured student loans                                                                       |   | $           | 28,574,666 |   |         | $      | 17,948,706 |   |
| Private education loans                                                                               |   |        | 9,877,200  |   |         |   | 7,432,471 |   |
| Deferred origination and premium costs                                                                |   |        | 714,830    |   |         |   | 548,083 |   |
| Allowance for loan losses                                                                             |   |        | (173,565   | )      |         |   | (149,098 | ) |
| Student loans, net                                                                                    |   |        | 38,993,131 |   |         |   | 25,780,162 |   |
| Loans held for sale                                                                                   |   |        | 4,713,030  |   |         |   | 2,409,267 |   |
| Cash                                                                                                  |   |        | 876        |   |         |   | 17,998 |   |
| Residual interests in securitized loans                                                               |   |        | –    |   |         |   | 820,291 |   |
| Other assets                                                                                          |   |        | 2,492,167  |   |         |   | 1,990,523 |   |
| Total Assets                                                                                          |   | $           | 46,199,204 |   |         | $      | 31,018,241 |   |
|                                                                                                  |   |        |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                  |   |        |       |   |         |   |   |   |
| Liabilities                                                                                           |   |        |       |   |         |   |   |   |
| Short-term borrowings, payable to principal stockholder                                               |   | $           | 4,566,600  |   |         | $      | 5,131,000 |   |
| Short-term secured borrowings, payable to the Department of Education                                 |   |        | 4,594,795  |   |         |   | 2,066,686 |   |
| Long-term borrowings, payable to principal stockholder                                                |   |        | 3,541,000  |   |         |   | 4,391,000 |   |
| Long-term secured borrowings                                                                          |   |        | 31,675,596 |   |         |   | 16,999,976 |   |
| Deferred income taxes                                                                                 |   |        | 165,569    |   |         |   | 410,546 |   |
| Other liabilities                                                                                     |   |        | 340,784    |   |         |   | 348,612 |   |
| Total liabilities                                                                                     |   |        | 44,884,344 |   |         |   | 29,347,820 |   |
| Stockholders’ Equity                                                                            |   |        |       |   |         |   |   |   |
| Common stock, $0.01 par value; authorized 50,000,000 shares; 20,000,000 shares issued and outstanding |   |        | 200        |   |         |   | 200 |   |
| Additional paid-in capital                                                                            |   |        | 143,136    |   |         |   | 141,869 |   |
| Retained earnings                                                                                     |   |        | 1,171,524  |   |         |   | 1,528,352 |   |
| Total stockholders' equity                                                                            |   |        | 1,314,860  |   |         |   | 1,670,421 |   |
| Total Liabilities and Stockholders' Equity                                                            |   | $           | 46,199,204 |   |         | $      | 31,018,241 |   |

| CONSOLIDATED VIEs                      |   | June 30,    |       |
|----------------------------------------|--------|-------------|------------|
|                                   |   | 2010        |       |
|                                   |   | (Unaudited) |       |
| ASSETS                                 |   |        |       |
| Federally insured student loans        |   | $           | 26,792,612 |   |
| Private education loans                |   |        | 5,821,788  |   |
| Deferred origination and premium costs |   |        | 569,237    |   |
| Allowance for loan losses              |   |        | (103,600   | ) |
| Other assets(1)                        |   |        | 2,001,122  |   |
|                                   |   |        |       |   |
| LIABILITIES                            |   |        |       |   |
| Long-term secured borrowings           |   | $           | 31,675,596 |   |
| Other liabilities                      |   |        | 183,834    |   |

| (1)   | Amount primarily represents restricted cash and cash equivalents of $1.1 billion and accrued interest receivable of $0.8 billion |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                      |   | Six Months EndedJune 30, |      |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                                                      |   | 2010                     |      |   | 2009 |   |
| COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL                                                                               |   |                     |      |   |   |   |
| Balance, beginning of period                                                                                              |   | $                        | 142,069   |   |   | $ | 141,923 |   |
| Capital contributions and other changes                                                                                   |   |                     | 1,267     |   |   |   | 85 |   |
| Balance, end of period                                                                                                    |   | $                        | 143,336   |   |   | $ | 142,008 |   |
|                                                                                                                      |   |                     |      |   |   |   |   |   |
| RETAINED EARNINGS                                                                                                         |   |                     |      |   |   |   |   |   |
| Balance, beginning of period                                                                                              |   | $                        | 1,528,352 |   |   | $ | 1,452,280 |   |
| Net income                                                                                                                |   |                     | 21,280    |   |   |   | 32,784 |   |
| Cumulative effect of adoption of accounting standards, net of taxes of $218.4 million                                     |   |                     | (364,108  | ) |   |   | – |   |
| Common dividends declared, $0.70 and $1.78 per common share for the six months ended June 30, 2010 and 2009, respectively |   |                     | (14,000   | ) |   |   | (35,600 | ) |
| Balance, end of period                                                                                                    |   | $                        | 1,171,524 |   |   | $ | 1,449,464 |   |
|                                                                                                                      |   |                     |      |   |   |   |   |   |
| TOTAL STOCKHOLDERS' EQUITY                                                                                                |   | $                        | 1,314,860 |   |   | $ | 1,591,472 |   |

|                                                                                                       |   | Six Months Ended |       |
|------------------------------------------------------------------------------------------------------------|--------|------------------|------------|
|                                                                                                       |   | June 30,         |       |
|                                                                                                       |   | 2010             |       |   | 2009 |   |
| Cash flows from operating activities:                                                                      |   |             |       |   |   |   |
| Net income                                                                                                 |   | $                | 21,280     |   |   | $ | 32,784 |   |
| Adjustments to reconcile net income to net cash from operating activities:                                 |   |             |       |   |   |   |   |   |
| Depreciation and amortization of equipment and computer software                                           |   |             | 5,353      |   |   |   | 5,156 |   |
| Amortization of deferred loan origination and purchase costs                                               |   |             | 63,832     |   |   |   | 42,525 |   |
| Provision for loan losses                                                                                  |   |             | 85,287     |   |   |   | 65,968 |   |
| Deferred tax provision                                                                                     |   |             | (25,864    | ) |   |   | (36,499 | ) |
| Other changes in loans held for sale including loan origination and purchase costs                         |   |             | (2,307,466 | ) |   |   | (1,700,898 | ) |
| Change in accrued interest receivable                                                                      |   |             | (109,658   | ) |   |   | (33,088 | ) |
| Proceeds from loans sold                                                                                   |   |             | –    |   |   |   | 1,212,613 |   |
| Gains on loans sold                                                                                        |   |             | –    |   |   |   | (17,864 | ) |
| Accreted interest on residual interests                                                                    |   |             | –    |   |   |   | (34,851 | ) |
| Loss on residual interest valuation                                                                        |   |             | –    |   |   |   | 84,543 |   |
| Loss on servicing asset valuation                                                                          |   |             | –    |   |   |   | 22,135 |   |
| Cash received on residual interests in trading securitized assets                                          |   |             | –    |   |   |   | 102,570 |   |
| Change in other assets                                                                                     |   |             | (861       | ) |   |   | 161,775 |   |
| Change in other liabilities                                                                                |   |             | (6,713     | ) |   |   | (49,583 | ) |
| Other non-cash charges                                                                                     |   |             | 9,880      |   |   |   | 2,942 |   |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Net cash used in operating activities                                                                      |   | $                | (2,264,930 | ) |   | $ | (139,772 | ) |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                      |   |             |       |   |   |   |   |   |
| Change in loans                                                                                            |   | $                | 760,843    |   |   | $ | (527,368 | ) |
| Change in loan origination and purchase costs                                                              |   |             | 17,364     |   |   |   | (10,849 | ) |
| Change in restricted cash and cash equivalents                                                             |   |             | (102,984   | ) |   |   | (118,570 | ) |
| Capital expenditures on equipment and computer software                                                    |   |             | (3,349     | ) |   |   | (3,826 | ) |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                                        |   | $                | 671,874    |   |   | $ | (660,613 | ) |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                      |   |             |       |   |   |   |   |   |
| Net change in borrowings payable to principal stockholder with original maturities of three months or less |   | $                | (914,400   | ) |   | $ | (4,409,800 | ) |
| Proceeds from other short-term borrowings                                                                  |   |             | 2,719,440  |   |   |   | 1,718,666 |   |
| Repayments of other short-term borrowings                                                                  |   |             | (248,331   | ) |   |   | (4,097,887 | ) |
| Proceeds from long-term borrowings                                                                         |   |             | 2,001,677  |   |   |   | 9,024,161 |   |
| Repayments of long-term borrowings                                                                         |   |             | (1,968,452 | ) |   |   | (1,386,728 | ) |
| Dividends paid to stockholders                                                                             |   |             | (14,000    | ) |   |   | (35,600 | ) |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Net cash provided by financing activities                                                                  |   | $                | 1,575,934  |   |   | $ | 812,812 |   |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Net (decrease) increase in cash                                                                            |   | $                | (17,122    | ) |   | $ | 12,427 |   |
| Cash - beginning of period                                                                                 |   |             | 17,998     |   |   |   | 595 |   |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Cash - end of period                                                                                       |   | $                | 876        |   |   | $ | 13,022 |   |
|                                                                                                       |   |             |       |   |   |   |   |   |
| Supplemental disclosure:                                                                                   |   |             |       |   |   |   |   |   |
| Cash paid for:                                                                                             |   |             |       |   |   |   |   |   |
| Interest                                                                                                   |   | $                | 321,362    |   |   | $ | 341,325 |   |
| Income taxes, net                                                                                          |   | $                | 43,817     |   |   | $ | 33,620 |   |

|   | 1. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
|--------|----|-----------------------------------------------------------|

|                                             |   | Three Months EndedJune 30, |      |   | Six Months EndedJune 30, |   |
|--------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
| (Dollars in thousands)                           |   | 2010                       |      |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Balance at beginning of period                   |   | $                          | 4,293,521 |   |                     | $      | 2,156,498 |   |   | $ | 2,409,267 |   |   | $ | 1,072,316 |   |
| Originations and purchases                       |   |                       | 485,475   |   |                     |   | 689,727 |   |   |   | 2,509,485 |   |   |   | 1,854,899 |   |
| Transfers back into the operating loan portfolio |   |                       | (2,372    | )      |                     |   | – |   |   |   | (3,703 | ) |   |   | (3,812 | ) |
| Loan sales                                       |   |                       | –   |   |                     |   | (1,194,743 | ) |   |   | – |   |   |   | (1,194,749 | ) |
| Other (1)                                        |   |                       | (63,594   | )      |                     |   | (76,829 | ) |   |   | (202,019 | ) |   |   | (154,001 | ) |
| Balance at end of period                         |   | $                          | 4,713,030 |   |                     | $      | 1,574,653 |   |   | $ | 4,713,030 |   |   | $ | 1,574,653 |   |
|                                             |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | Amounts include, among other things, borrower principal payments and loan cancellations. |
|-----------------|------------------------------------------------------------------------------------------|

|                                             |   | January 1,  |       |
|--------------------------------------------------|--------|-------------|------------|
| (Dollars in thousands)                           |   | 2010        |       |
|                                             |   | (Unaudited) |       |
| Assets:                                          |   |        |       |
| Federally insured student loans                  |   | $           | 11,825,513 |   |
| Private education loans                          |   |        | 2,064,716  |   |
| Deferred origination and premium costs           |   |        | 247,902    |   |
| Allowance for loan losses                        |   |        | (6,987     | ) |
|   Student loans, net                        |   |        | 14,131,144 |   |
| Residual interest in securitized loans           |   |        | (820,291   | ) |
|   Other assets                              |   |        | 274,666    |   |
| Total Assets                                     |   | $           | 13,585,519 |   |
|                                             |   |        |       |   |
| Liabilities and Stockholders’ Equity:      |   |        |       |   |
| Long-term secured borrowings                     |   | $           | 14,165,862 |   |
| Deferred income taxes                            |   |        | (219,113   | ) |
|   Other liabilities                         |   |        | 2,878      |   |
|   Total Liabilities                    |   |        | 13,949,627 |   |
| Retained earnings                                |   |        | (364,108   | ) |
|  Total Liabilities and Stockholders' Equity |   | $           | 13,585,519 |   |

|   |   |
|--------|--------|

| 2.   | FUTURE APPLICATIONS OF ACCOUNTING STANDARDS |
|----------------|---------------------------------------------|

| 3.   | STUDENT LOANS |
|----------------|---------------|

|                                               |   | June 30, |       |   | December 31, |   |
|----------------------------------------------------|--------|----------|------------|--------|--------------|--------|
| (Dollars in thousands)                             |   | 2010     |       |   | 2009         |   |
| Federal Stafford Loans                             |   | $        | 11,206,066 |   |         | $      | 10,414,533 |   |
| Federal Consolidation Loans                        |   |     | 15,645,435 |   |         |   | 5,864,695 |   |
| Federal SLS/PLUS/HEAL Loans                        |   |     | 1,723,165  |   |         |   | 1,669,478 |   |
| Private education loans                            |   |     | 9,877,200  |   |         |   | 7,432,471 |   |
| Total student loans held, excluding deferred costs |   |     | 38,451,866 |   |         |   | 25,381,177 |   |
| Deferred origination and premium costs             |   |     | 714,830    |   |         |   | 548,083 |   |
| Student loans held                                 |   |     | 39,166,696 |   |         |   | 25,929,260 |   |
| Less: allowance for loan losses                    |   |     | (173,565   | )      |         |   | (149,098 | ) |
| Student loans held, net                            |   |     | 38,993,131 |   |         |   | 25,780,162 |   |
| Loans held for sale, excluding deferred costs      |   |     | 4,659,978  |   |         |   | 2,381,026 |   |
| Deferred origination and premium costs             |   |     | 53,052     |   |         |   | 28,241 |   |
| Loans held for sale                                |   |     | 4,713,030  |   |         |   | 2,409,267 |   |
| Other loans and lines of credit (1)                |   |     | 168        |   |         |   | 5,616 |   |
| Total loan assets                                  |   | $        | 43,706,329 |   |         | $      | 28,195,045 |   |

|   | (1) | Recorded in Other Assets and included in Other in Note 4. |
|--------|-----|-----------------------------------------------------------|

|                                          |   | June 30, |      |   | December 31, |   |
|-----------------------------------------------|--------|----------|-----------|--------|--------------|--------|
| (Dollars in thousands)                        |   | 2010     |      |   | 2009         |   |
| Accrued interest receivable:                  |   |     |      |   |         |   |
| from student loan borrowers                   |   | $        | 1,137,351 |   |         | $      | 889,461 |   |
| from federal government                       |   |     | 7,708     |   |         |   | 1,607 |   |
| Restricted cash and cash equivalents          |   |     | 1,082,178 |   |         |   | 690,536 |   |
| Income taxes receivable                       |   |     | 127,450   |   |         |   | 114,077 |   |
| Deferred financing fees                       |   |     | 91,164    |   |         |   | 39,667 |   |
| Equipment and computer software (1)           |   |     | 22,504    |   |         |   | 24,745 |   |
| Servicing asset from securitization activity  |   |     | –   |   |         |   | 176,587 |   |
| Retained notes from securitization activities |   |     | –   |   |         |   | 19,750 |   |
| Other                                         |   |     | 23,812    |   |         |   | 34,093 |   |
| Total other assets                            |   | $        | 2,492,167 |   |         | $      | 1,990,523 |   |

|   | (1) | Amounts are reflected net of accumulated depreciation and software amortization of $68.8 million and $67.0 million at June 30, 2010 and December 31, 2009, respectively. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | SHORT- AND LONG-TERM BORROWINGS |
|--------|----|---------------------------------|

|                                                                                        |   | June 30,2010   |   |   | December 31,2009 |       |
|---------------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------------|------------|
| (Dollars in thousands)                                                                      |   | Interest Rates |   |   | Ending Balance   |       |   | Ending Balance |   |
| Unsecured borrowings:                                                                       |   |           |   |   |             |       |   |   |   |
| Short-term borrowings, payable to principal stockholder                                     |   | 0.31% to 2.90% |   |   | $                | 4,566,600  |   |   | $ | 5,131,000 |   |
| Long-term borrowings, payable to principal stockholder                                      |   | 2.67% to 5.39% |   |   |             | 3,541,000  |   |   |   | 4,391,000 |   |
| Total unsecured borrowings                                                                  |   |           |   |   | $                | 8,107,600  |   |   | $ | 9,522,000 |   |
|                                                                                        |   |           |   |   |             |       |   |   |   |   |   |
| Secured borrowings:                                                                         |   |           |   |   |             |       |   |   |   |   |   |
| Short-term secured borrowings                                                               |   |           | 0.71   | %      |             | $          | 4,594,795 |   |   | $ | 2,066,686 |   |
| Senior notes on long-term secured borrowings from on-balance sheet securitizations(1)       |   | 0.37% to 4.75% |   |   |             | 20,703,574 |   |   |   | 6,812,894 |   |
| Subordinated notes on long-term secured borrowings from on-balance sheet securitizations(1) |   | 0.60% to 2.29% |   |   |             | 789,990    |   |   |   | – |   |
| Long-term secured borrowings from the Conduit(2)                                            |   |           | 0.72   | %      |             |       | 10,182,032 |   |   |   | 10,187,082 |   |
| Total secured borrowings                                                                    |   |           |   |   |             | $          | 36,270,391 |   |   | $ | 19,066,662 |   |
| Total Borrowings                                                                            |   |           |   |   |             | $          | 44,377,991 |   |   | $ | 28,588,662 |   |

| (1)   | Interest due on secured borrowings from the Company’s on-balance sheet securitizations is variable based on either 3-Month LIBOR, 1-Month LIBOR or prime, plus a fixed premium. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Interest due on secured borrowings from the Conduit is variable based on the rates at which the Conduit is able to issue commercial paper, plus fixed costs associated with the Conduit. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | FEE AND OTHER INCOME |
|--------|----|----------------------|

|                                                                                                   |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)                                                                                 |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Late fees                                                                                              |   | $                          | 2,899   |   |                     | $      | 792 |   |   | $ | 7,801 |   |   | $ | 2,476 |   |
| Net mark-to-market gain (loss) on interest rate derivative                                             |   |                       | 4,251   |   |                     |   | – |   |   |   | (89 | ) |   |   | – |   |
| Gain (loss) on foreign currency translation net of mark-to-market (loss) gain on foreign currency swap |   |                       | 1,006   |   |                     |   | (1,153 | ) |   |   | 185 |   |   |   | 1,098 |   |
| Other origination and servicing fees from CBNA                                                         |   |                       | 264     |   |                     |   | 2,017 |   |   |   | 788 |   |   |   | 4,165 |   |
| Net gains from securitization retained interests and related derivatives                               |   |                       | – |   |                     |   | 28,720 |   |   |   | – |   |   |   | 29,247 |   |
| Other income                                                                                           |   |                       | 391     |   |                     |   | 475 |   |   |   | 711 |   |   |   | 823 |   |
| Total fee and other income                                                                             |   | $                          | 8,811   |   |                     | $      | 30,851 |   |   | $ | 9,396 |   |   | $ | 37,809 |   |

|   | 7. | RELATED PARTY TRANSACTIONS |
|--------|----|----------------------------|

|                                        |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|---------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)                      |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                   |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Interest income                             |   | $                          | 112     |   |                     | $      | 117 |   |   | $ | 152 |   |   | $ | 267 |   |
| Interest expense                            |   |                       | 87,933  |   |                     |   | 89,967 |   |   |   | 174,651 |   |   |   | 206,623 |   |
| Fee and other income (loss):                |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Derivative valuation gain (loss)            |   |                       | – |   |                     |   | 42,886 |   |   |   | (267 | ) |   |   | 96,464 |   |
| Other origination and servicing fees        |   |                       | 264     |   |                     |   | 2,017 |   |   |   | 788 |   |   |   | 4,165 |   |
|                                        |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                         |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits              |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Employee benefits and administration        |   | $                          | 1,530   |   |                     | $      | 1,670 |   |   | $ | 3,081 |   |   | $ | 3,366 |   |
| Stock-based compensation                    |   |                       | 300     |   |                     |   | 321 |   |   |   | 615 |   |   |   | 304 |   |
| Other expenses                              |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Servicing, professional and other fees paid |   |                       | 14,616  |   |                     |   | 15,593 |   |   |   | 29,579 |   |   |   | 31,415 |   |
| Data processing and communications          |   |                       | 2,397   |   |                     |   | 1,986 |   |   |   | 4,846 |   |   |   | 3,945 |   |
| Premises                                    |   |                       | 534     |   |                     |   | 533 |   |   |   | 1,059 |   |   |   | 1,088 |   |
| Write-off of funding commitment fee         |   |                       | – |   |                     |   | – |   |   |   | 7,500 |   |   |   | – |   |
| Other                                       |   |                       | 657     |   |                     |   | 842 |   |   |   | 1,505 |   |   |   | 1,491 |   |

|   | 8. | STUDENT LOAN SECURITIZATIONS AND VARIABLE INTEREST ENTITIES |
|--------|----|-------------------------------------------------------------|

|                                                                                     |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)                                                                   |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Student loans securitized (1)                                                            |   | $                          | – |   |                     | $      | – |   |   | $ | 1,899,710 |   |   | $ | 587,285 |   |
| Student loans funded through the Conduit (1)                                        |   |                       | – |   |                     |   | 8,543,157 |   |   |   | 547,541 |   |   |   | 8,543,157 |   |
| Total student loans funded through securitization financings (1)                         |   | $                          | – |   |                     | $      | 8,543,157 |   |   | $ | 2,447,251 |   |   | $ | 9,130,442 |   |
|                                                                                     |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net proceeds from student loans securitized (2)                                          |   | $                          | – |   |                     | $      | – |   |   | $ | 1,459,441 |   |   | $ | 546,126 |   |
| Net proceeds from student loans funded through the Conduit during the current period (2) |   |                       | – |   |                     |   | 8,492,288 |   |   |   | 533,632 |   |   |   | 8,492,288 |   |
| Total net proceeds from securitization financings(2)                                     |   | $                          | – |   |                     | $      | 8,492,288 |   |   | $ | 1,993,073 |   |   | $ | 9,038,414 |   |

| (1)   | Amounts represent the carrying value of the student loans securitized as of the securitization date. |
|-----------------|------------------------------------------------------------------------------------------------------|

| (2)   | Amounts represent net proceeds from loans securitized or funded through the Conduit as of the securitization / funding date. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

|                   |   | December 31, 2009 |       |
|------------------------|--------|-------------------|------------|
| (Dollars in thousands) |   | FFELProgramLoans  |       |   | PrivateEducation Loans |   |
| Principal amounts      |   | $                 | 11,830,320 |   |   | $ | 2,066,492 |   |
| Retained interests     |   |              | 868,529    |   |   |   | 148,099 |   |

|                                |   | Three Months Ended |   |   | Six Months Ended |   |
|-------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                |   | June 30,           |   |   | June 30,         |   |
| (Dollars in thousands)              |   | 2009               |   |   | 2009             |   |
| Cash received for servicing         |   | $                  | 19,622 |   |             | $      | 39,688 |   |
| Cash received on residual interests |   |               | 48,711 |   |             |   | 102,570 |   |
| Cash received on retained notes     |   |               | 610    |   |             |   | 1,391 |   |

|                                                           |   | Three Months Ended |    |   | Six Months Ended |   |
|----------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                           |   | June 30,           |    |   | June 30,         |   |
| (Dollars in thousands)                                         |   | 2010               |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Balance at beginning of period                                 |   | $                  | – |   |             | $      | 200,798 |   |   | $ | 176,587 |   |   | $ | 208,133 |   |
| Changes in fair value due to changes in inputs and assumptions |   |               | – |   |             |   | (6,798 | ) |   |   | – |   |   |   | (5,586 | ) |
| Other changes (1)                                              |   |               | – |   |             |   | (8,002 | ) |   |   | (176,587 | ) |   |   | (16,549 | ) |
| Balance at end of period                                       |   | $                  | – |   |             | $      | 185,998 |   |   | $ | – |   |   | $ | 185,998 |   |

| (1)   | Amount for the six months ended June 30, 2010 represents the elimination of servicing assets as the Company consolidated previously off-balance sheet securitization trusts as a result of changes in accounting standards.  Amount for the three and six months ended June 30, 2009 represents the effects of excess servicing income received and the passage of time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|--------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)                                                   |   | 2009                       |    |   | 2009                     |   |
| Losses related to residual interests                                     |   | $                          | (18,884 | )      |                     | $      | (84,543 | ) |
| Servicing revenue net of valuation gains and losses on servicing assets  |   |                       | 4,718   |   |                     |   | 17,326 |   |
| Mark-to-market gains on derivatives                                      |   |                       | 42,886  |   |                     |   | 96,464 |   |
| Net gains from securitization retained interests and related derivatives |   | $                          | 28,720  |   |                     | $      | 29,247 |   |

|                                                        |   | December 31,    |   |
|-------------------------------------------------------------|--------|-----------------|--------|
|                                                        |   | 2009            |   |
| Discount rates:                                             |   |            |   |
| FFEL Program Consolidation Loans                            |   |            | 11.10  | % |
| FFEL Program Stafford and PLUS loan                         |   |            | 11.10  | % |
| Private education loans                                     |   |            | 16.85  | % |
| Constant prepayment rates:                                  |   |            |   |   |
| FFEL Program Consolidation Loans                            |   | 0.16% to 0.58%  |   |
| FFEL Program Stafford and PLUS loan                         |   |            | 4.44   | % |
| Private education loans                                     |   |            | 3.45   | % |
| Anticipated credit losses, net of insurance and guarantees: |   |            |   |   |
| FFEL Program Consolidation Loans                            |   |            | 0.27   | % |
| FFEL Program Stafford and PLUS loan                         |   |            | 0.57   | % |
| Private education loans                                     |   |            | 0.90   | % |
| Basis spread between LIBOR and Commercial Paper rates       |   | 16 basis points |   |
| Utilization rates of borrower benefits:                     |   |            |   |   |
| Automated clearing house                                    |   | 2.6% to 38.1%   |   |
| On time payments                                            |   | 0% to 34.5%     |   |

|                              |   | December 31, 2009 |   |
|-----------------------------------|--------|-------------------|--------|
| Discount rates:                   |   |              |   |
| FFEL Program Consolidation Loans  |   |              | 5.39   | % |
| Private education loans           |   |              | 5.89   | % |
| Constant prepayment rates:        |   |              |   |   |
| FFEL Program Consolidation Loans  |   | 0.16% to 0.58%    |   |
| Private education loans           |   |              | 3.45   | % |
| Weighted average servicing margin |   | 20 basis points   |   |

| (Dollars in thousands) |   | December 31, 2009 |       |
|------------------------|--------|-------------------|------------|
|                   |   |              |       |
| Principal amounts      |   | $                 | 13,896,812 |   |
| Delinquencies          |   |              | 553,463    |   |

|                              |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                              |   | June 30,           |   |   | June 30,         |   |
| (Dollars in thousands)            |   | 2009               |   |   | 2009             |   |
|                              |   |               |   |   |             |   |
| Credit losses, net of recoveries: |   | $                  | 3,047  |   |             | $      | 5,825 |   |

|   | 9. | DERIVATIVE AGREEMENTS |
|--------|----|-----------------------|

|                   |   | June 30, 2010 |      |   | December 31, 2009 |   |
|------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                   |   |          |      |   | Fair Value        |   |   |   |   |   | Fair Value |   |
| (Dollars in thousands) |   | Notional      |      |   | Asset             |   |   | Liability |   |   | Notional |   |   | Asset |   |   | Liability |   |
| Prime-LIBOR swap       |   | $             | 1,860,786 |   |              | $      | 17,222 |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |
| Foreign currency swap  |   |          | 232,050   |   |              |   | – |   |   |   | 48,442 |   |   |   | 232,050 |   |   |   | – |   |   |   | 17,381 |   |

|                                    |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|-----------------------------------------|--------|----------------------------|---------|--------|-------------------------------|--------|
| (Dollars in thousands)                  |   | 2010                       |    |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| (Losses) gains on foreign currency swap |   | $                          | (18,074 | )      |                          | $      | 10,037 |   |   | $ | (31,060 | ) |   | $ | 2,688 |   |
| Gains (losses) on prime-LIBOR swap      |   |                       | 4,251   |   |                          |   | – |   |   |   | (89 | ) |   |   | – |   |
| Gains on LIBOR-based swaps         |   |                       | – |   |                          |   | 3,862 |   |   |   | – |   |   |   | 10,431 |   |
| Gains on interest rate floor options    |   |                       | – |   |                          |   | 39,024 |   |   |   | – |   |   |   | 86,033 |   |
| Net (losses) gains on derivatives       |   | $                          | (13,823 | )      |                          | $      | 52,923 |   |   | $ | (31,149 | ) |   | $ | 99,152 |   |

|                                          |   | June 30, 2010  |       |   | December 31, 2009    |   |
|-----------------------------------------------|--------|----------------|------------|--------|----------------------|--------|
| (Dollars in thousands)                        |   | Carrying Value |       |   | Estimated Fair Value |   |   | Carrying Value |   |   | Estimated Fair Value |   |
| Financial Assets:                             |   |           |       |   |                 |   |   |   |   |   |   |   |
| Federally insured student loans               |   | $              | 33,752,495 |   |                 | $      | 34,217,228 |   |   | $ | 20,719,055 |   |   | $ | 20,368,741 |   |
| Private education loans                       |   |           | 9,953,834  |   |                 |   | 7,937,497 |   |   |   | 7,475,990 |   |   |   | 5,014,558 |   |
| Cash and restricted cash and cash equivalents |   |           | 1,083,054  |   |                 |   | 1,083,054 |   |   |   | 708,534 |   |   |   | 708,534 |   |
| Accrued interest receivable                   |   |           | 1,145,059  |   |                 |   | 1,089,414 |   |   |   | 891,069 |   |   |   | 776,524 |   |
| Derivative assets                             |   |           | 17,222     |   |                 |   | 17,222 |   |   |   | – |   |   |   | – |   |
| Residual interests in loans securitized       |   |           | –    |   |                 |   | – |   |   |   | 820,291 |   |   |   | 820,291 |   |
| Servicing assets                              |   |           | –    |   |                 |   | – |   |   |   | 176,587 |   |   |   | 176,587 |   |
| Retained notes from securitization sales      |   |           | –    |   |                 |   | – |   |   |   | 19,750 |   |   |   | 19,750 |   |
| Financial Liabilities:                        |   |           |       |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings                         |   | $              | 9,161,395  |   |                 | $      | 9,167,166 |   |   | $ | 7,197,686 |   |   | $ | 7,219,301 |   |
| Long-term borrowings                          |   |           | 35,216,596 |   |                 |   | 34,340,556 |   |   |   | 21,390,976 |   |   |   | 21,412,849 |   |
| Derivative liabilities                        |   |           | 48,442     |   |                 |   | 48,442 |   |   |   | 17,381 |   |   |   | 17,381 |   |
| Interest payable                              |   |           | 76,416     |   |                 |   | 76,416 |   |   |   | 63,898 |   |   |   | 63,898 |   |

|   | 11. | FAIR VALUE (ASC 860-50-35 and 50, ASC 820-10 AND ASC 825-10) |
|--------|-----|--------------------------------------------------------------|

| Level 1 – | Quoted prices for identical instruments in active markets.                                                                                                                                                                                         |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                               |
| Level 2 – | Quoted prices for similar instruments in active markets, 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.                                                                                                                                                                                          |

|                                    |   | June 30, 2010 |    |   | December 31, 2009 |   |
|-----------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| (Dollars in thousands)                  |   | Level 2       |    |   | Level 3 (1)       |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                                 |   |          |    |   |              |   |   |   |   |   |   |   |
| Other assets (2)                        |   | $             | 17,222  |   |              | $      | – |   |   | $ | – |   |   | $ | 196,337 |   |
| Residual interests in securitized loans |   |          | – |   |              |   | – |   |   |   | – |   |   |   | 820,291 |   |
| Total Assets                            |   | $             | 17,222  |   |              | $      | – |   |   | $ | – |   |   | $ | 1,016,628 |   |
|                                    |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                            |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other liabilities                       |   | $             | 48,442  |   |              | $      | – |   |   | $ | 17,381 |   |   | $ | – |   |

| (1)   | As a result of changes in accounting standards effective January 1, 2010, which resulted in the consolidation of the Company’s previously unconsolidated securitizations trusts, the Company no longer has any retained interests in off-balance sheet securitizations, which were previously recorded in Level 3. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Amount reported in Level 2 at June 30, 2010 represents an interest rate swap from one of the Company’s securitization trusts that was consolidated as a result of changes in accounting standards, effective January 1, 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                      |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|---------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)                                                    |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Residual interests in securitized loans:                                  |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Balance at beginning of period                                            |   | $                          | – |   |                     | $      | 841,081 |   |   | $ | 820,291 |   |   | $ | 942,807 |   |
| Total gains and losses (realized/unrealized) included in earnings:        |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                           |   |                       | – |   |                     |   | 17,059 |   |   |   | – |   |   |   | 34,851 |   |
| Fee and other income                                                      |   |                       | – |   |                     |   | (18,884 | ) |   |   | – |   |   |   | (84,543 | ) |
| Purchases, issuances and settlements (1)                                  |   |                       | – |   |                     |   | (48,711 | ) |   |   | (820,291 | ) |   |   | (102,570 | ) |
| Balance at end of period                                                  |   | $                          | – |   |                     | $      | 790,545 |   |   | $ | – |   |   | $ | 790,545 |   |
|                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized losses relating to assets still held at the reporting date (2) |   | $                          | – |   |                     | $      | (18,884 | ) |   | $ | – |   |   | $ | (84,543 | ) |
|                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Servicing assets and retained notes included in Other assets:             |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of period                                            |   | $                          | – |   |                     | $      | 267,285 |   |   | $ | 196,337 |   |   | $ | 274,620 |   |
| Total losses (realized/unrealized) included in earnings:                  |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Fee and other income                                                      |   |                       | – |   |                     |   | (4,415 | ) |   |   | – |   |   |   | (1,057 | ) |
| Purchases, issuances and settlements (1)                                  |   |                       | – |   |                     |   | (10,385 | ) |   |   | (196,337 | ) |   |   | (21,078 | ) |
| Balance at end of period                                                  |   | $                          | – |   |                     | $      | 252,485 |   |   | $ | – |   |   | $ | 252,485 |   |
|                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized losses relating to assets still held at the reporting date (2) |   | $                          | – |   |                     | $      | (6,798 | ) |   | $ | – |   |   | $ | (5,586 | ) |

|   | (1) | Amount reported for the six months ended June 30, 2010 represents the elimination of the Company's residual interests and servicing assets as in its previously off-balance sheet securitization trusts as a result of changes in accounting standards which resulted in the consolidation of these trusts. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The difference between total gains and losses (realized /unrealized) included in earnings and unrealized gains and losses relating to assets still held at the reporting date represents accreted yield. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12. | COMMITMENTS AND CONTINGENCIES |
|--------|-----|-------------------------------|

| · | the amount, availability, and cost of future short- and long-term financing to the Company from Citibank, N.A. (CBNA), securitizations, whole loan sales, and other sources;                                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the Company’s ability to acquire or originate a sufficient volume of private education loans in the amounts anticipated and with interest rates that generate sufficient yields and margins;                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the effects of legislative and regulatory changes that affect the demand for, collectability of and interest rates on student loans, especially the establishment of certain fixed rates of interest on Federal Family Education Loan (FFEL) Program loans, as well as the Health Care and Education Reconciliation Act of 2010 which eliminated the origination of new FFEL Program loans as of July 1, 2010; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the success of the Company’s strategic repositioning efforts, including a more refined origination strategy and pricing changes on its private education loan originations;                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the success of the Company’s marketing and sales efforts to grow and improve the profitability of its private education loan business;                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | actual credit losses, loan collection strategies and their impact on delinquency rates, including but not limited to those associated with changes to the Company’s loss mitigation programs, and the adequacy of loan loss reserves;                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | any change in ownership of the Company or its assets that could result from the potential disposition by CBNA or other potential asset dispositions by the Company;                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | fluctuations in interest rates and between various interest rate indices, particularly the manner in which short-term rates affect the Company’s funding costs, consolidation rates, the rates at which interest accrues on its loan portfolio and the effects of interest rate fluctuations on the demand for student loans;                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the amount of loan subsidies and any effect on the Company’s net interest margin;                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | general economic conditions, including, without limitation, the performance of financial markets and unemployment rates;                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the availability of alternative financing options to students and their parents, including competitive products offered by other lenders;                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the amount of financial aid available to students and their parents and the cost of education;                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | prepayment rates on student loans and the quality and profitability of those loans that move into repayment status, as well as actual experience with the repayment cycle of the loan portfolio;                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the performance of the Company’s loan portfolio servicers, insurers, risk-sharers and higher education institution clients;                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | the Company’s and other servicers’ ability to continue to service the loan portfolio in accordance with their contractual obligations;                                                                                                                                                                                                                                                             |
|   |                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------|
| · | loan origination costs; and                                                                                      |
|   |                                                                                                             |
| · | the adequacy of the Company’s capital expenditures and of funds allocated for future capital expenditures. |

|                                                              |   | June 30, 2010                                   |       |
|-------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                              |   | (Unaudited)                                     |       |
| (Dollars in thousands)                                            |   | SLC and Previously Consolidated Subsidiaries(1) |       |   | Subsidiaries Consolidated on 1/1/2010(2) |   |   |  Total Consolidated(3) |   |
| Assets:                                                           |   |                                            |       |   |   |   |   |   |   |
| Federally insured student loans                                   |   | $                                               | 17,230,290 |   |   | $ | 11,344,376 |   |   | $ | 28,574,666 |   |
| Private education loans                                           |   |                                            | 7,931,285  |   |   |   | 1,945,915 |   |   |   | 9,877,200 |   |
| Deferred origination and premium costs                            |   |                                            | 489,800    |   |   |   | 225,030 |   |   |   | 714,830 |   |
| Allowance for loan losses                                         |   |                                            | (167,221   | ) |   |   | (6,344 | ) |   |   | (173,565 | ) |
| Student loans held for sale                                       |   |                                            | 4,713,030  |   |   |   | – |   |   |   | 4,713,030 |   |
| Cash                                                              |   |                                            | 876        |   |   |   | – |   |   |   | 876 |   |
| Other assets                                                      |   |                                            | 2,018,632  |   |   |   | 473,535 |   |   |   | 2,492,167 |   |
| Total Assets                                                      |   | $                                               | 32,216,692 |   |   | $ | 13,982,512 |   |   | $ | 46,199,204 |   |
|                                                              |   |                                            |       |   |   |   |   |   |   |   |   |   |
| Liabilities and stockholders’ equity:                       |   |                                            |       |   |   |   |   |   |   |   |   |   |
| Short- and long-term borrowings, payable to principal stockholder |   | $                                               | 8,107,600  |   |   | $ | – |   |   | $ | 8,107,600 |   |
| Short-term secured borrowings, payable to Department of Education |   |                                            | 4,594,795  |   |   |   | – |   |   |   | 4,594,795 |   |
| Long-term secured borrowings                                      |   |                                            | 18,127,105 |   |   |   | 13,548,491 |   |   |   | 31,675,596 |   |
| Deferred income taxes                                             |   |                                            | 165,569    |   |   |   | – |   |   |   | 165,569 |   |
| Other liabilities                                                 |   |                                            | 311,090    |   |   |   | 29,694 |   |   |   | 340,784 |   |
| Net intercompany payables and receivables                         |   |                                            | (404,327   | ) |   |   | 404,327 |   |   |   | – |   |
| Common stock and Additional Paid-in Capital                       |   |                                            | 143,336    |   |   |   | – |   |   |   | 143,336 |   |
| Retained earnings                                                 |   |                                            | 1,171,524  |   |   |   | – |   |   |   | 1,171,524 |   |
| Total Liabilities and Stockholders’ Equity                  |   | $                                               | 32,216,692 |   |   | $ | 13,982,512 |   |   | $ | 46,199,204 |   |

| (1)   | Represents The Student Loan Corporation and its subsidiaries that were consolidated under accounting standards in effect prior to the adoption of accounting standards on January 1, 2010, which resulted in the consolidation of the Company’s previously off-balance sheet securitizations. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents the Company’s subsidiaries that were consolidated upon adoption of accounting standards on January 1, 2010, which resulted in the consolidation of the Company’s previously off-balance sheet securitization trusts. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents the Company’s Consolidated Balance Sheet at June 30, 2010. |
|-----------------|-----------------------------------------------------------------------------|

|                           |   | Three Months Ended June 30, 2010                               |     |
|--------------------------------|--------|----------------------------------------------------------------|----------|
|                           |   | (Unaudited)                                                    |     |
| (Dollars in thousands)         |   | Impact from SLC and Previously Consolidated Subsidiaries(1)(4) |     |   | Impact from Subsidiaries Consolidated on 1/1/2010(2)(4) |   |   | Total Consolidated(3) |   |
| Interest income                |   | $                                                              | 201,635  |   |   | $ | 81,688 |   |   | $ | 283,323 |   |
| Interest expense               |   |                                                           | (168,654 | ) |   |   | (20,210 | ) |   |   | (188,864 | ) |
| Net interest income            |   |                                                           | 32,981   |   |   |   | 61,478 |   |   |   | 94,459 |   |
| Provision for loan losses      |   |                                                           | (39,330  | ) |   |   | (2,067 | ) |   |   | (41,397 | ) |
| Fee and other income (loss)    |   |                                                           | 3,371    |   |   |   | 5,440 |   |   |   | 8,811 |   |
| Salaries and employee benefits |   |                                                           | (7,620   | ) |   |   | – |   |   |   | (7,620 | ) |
| Other expenses                 |   |                                                           | (26,713  | ) |   |   | (15 | ) |   |   | (26,728 | ) |
| Provision for income taxes     |   |                                                           | (6,704   | ) |   |   | – |   |   |   | (6,704 | ) |
| Total Net (Loss) Income        |   | $                                                              | (44,015  | ) |   | $ | 64,836 |   |   | $ | 20,821 |   |

| (1)   | Represents The Student Loan Corporation and its subsidiaries that were consolidated under accounting standards in effect prior to the adoption of accounting standards on January 1, 2010, which resulted in the consolidation of the Company’s previously off-balance sheet securitizations.  In addition, this includes the costs the Company incurs to service the loans that were consolidated on January 1, 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents the Company’s subsidiaries that were consolidated upon adoption of accounting standards on January 1, 2010, which resulted in the consolidation of the Company’s previously off-balance sheet securitization trusts.  The costs the Company incurs to service the loans in these trusts is not captured in this column. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents the Company’s Consolidated Income Statement for the three months ended June 30, 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (4)   | All intercompany income and expense including, among other things, servicing fee revenue and expense have been excluded. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

|                                                              |   | Six Months Ended June 30, 2010                                 |     |
|-------------------------------------------------------------------|--------|----------------------------------------------------------------|----------|
|                                                              |   | (Unaudited)                                                    |     |
| (Dollars in thousands)                                            |   | Impact from SLC and Previously Consolidated Subsidiaries(1)(4) |     |   | Impact from Subsidiaries Consolidated on 1/1/2010(2)(4) |   |   | Total Consolidated(3) |   |
| Interest income                                                   |   | $                                                              | 380,794  |   |   | $ | 159,350 |   |   | $ | 540,144 |   |
| Interest expense                                                  |   |                                                           | (321,939 | ) |   |   | (38,773 | ) |   |   | (360,712 | ) |
| Net interest income                                               |   |                                                           | 58,855   |   |   |   | 120,577 |   |   |   | 179,432 |   |
| Provision for loan losses                                         |   |                                                           | (80,805  | ) |   |   | (4,482 | ) |   |   | (85,287 | ) |
| Fee and other income (loss)                                       |   |                                                           | 6,759    |   |   |   | 2,637 |   |   |   | 9,396 |   |
| Salaries and employee benefits                                    |   |                                                           | (15,565  | ) |   |   | – |   |   |   | (15,565 | ) |
| Write-off of funding commitment fee paid to principal stockholder |   |                                                           | (7,500   | ) |   |   | – |   |   |   | (7,500 | ) |
| Other expenses                                                    |   |                                                           | (52,565  | ) |   |   | (52 | ) |   |   | (52,617 | ) |
| Provision for income taxes                                        |   |                                                           | (6,579   | ) |   |   | – |   |   |   | (6,579 | ) |
| Total Net (Loss) Income                                           |   | $                                                              | (97,400  | ) |   | $ | 118,680 |   |   | $ | 21,280 |   |

| (1)   | Represents The Student Loan Corporation and its subsidiaries that were consolidated under accounting standards in effect prior to the adoption of accounting standards on January 1, 2010, which resulted in the consolidation of the Company’s previously off-balance sheet securitizations.  In addition, this includes the costs the Company incurs to service the loans that were consolidated on January 1, 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents the Company’s subsidiaries that were consolidated upon adoption of accounting standards on January 1, 2010, which resulted in the consolidation of the Company’s previously off-balance sheet securitization trusts.  The costs the Company incurs to service the loans in these trusts is not captured in this column. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents the Company’s Consolidated Income Statement for the six months ended June 30, 2010. |
|-----------------|------------------------------------------------------------------------------------------------------|

| (4)   | All intercompany income and expense including, among other things, servicing fee revenue and expense have been excluded. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

|                                                                    |   | Three months ended |   |   | Six months ended |
|-------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|
|                                                                    |   | June 30, 2009      |   |   | June 30, 2009    |
| (Amounts reported in thousands)                                         |   | (Unaudited)        |   |   | (Unaudited)      |
|                                                                    |   |               |   |   |             |
| Interest income:                                                        |   |               |   |   |             |
| Accreted interest on residual interests                                 |   | $                  | 17,059 |   |             | $ | 34,851 |
| Fee and other income:                                                   |   |               |   |   |             |   |   |   |   |
| Servicing fee revenue                                                   |   |               | 19,519 |   |             |   | 39,462 |
| Net mark-to-market gains (losses) on retained interests and derivatives |   |               | 9,201  |   |             |   | (10,215) |

|                                                               |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                               |   | June 30,           |   |   | June 30,         |   |
| (Dollars in millions)                                              |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Retail:                                                            |   |               |   |   |             |   |   |   |   |   |   |   |
| FFEL Program Stafford and PLUS Loan originations                   |   | $                  | 513    |   |             | $      | 721 |   |   | $ | 2,521 |   |   | $ | 2,913 |   |
| CitiAssist® loans disbursed under commitments to purchase (1) |   |               | 73     |   |             |   | 123 |   |   |   | 402 |   |   |   | 766 |   |
| Total Retail                                                       |   |               | 586    |   |             |   | 844 |   |   |   | 2,923 |   |   |   | 3,679 |   |
| Wholesale:                                                         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Loan Consolidation and other secondary market volume               |   |               | 13     |   |             |   | 12 |   |   |   | 20 |   |   |   | 42 |   |
| Total Originations                                                 |   | $                  | 599    |   |             | $      | 856 |   |   | $ | 2,943 |   |   | $ | 3,721 |   |

| (1)   | Represents CitiAssist loans disbursed by CBNA. These loans have been or will be purchased by the Company after final disbursement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

|                              |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|-----------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)            |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Balance at beginning of period(1) |   |                       |    |   |                     |   |   |   |   |   |   |   |
| FFEL Program                      |   | $                          | 24,407  |   |                     | $      | 14,843 |   |   | $ | 26,080 |   |   | $ | 14,445 |   |
| Insured CitiAssist                |   |                       | 16,047  |   |                     |   | 9,950 |   |   |   | 17,554 |   |   |   | 8,512 |   |
| Uninsured CitiAssist Standard     |   |                       | 53,311  |   |                     |   | 14,337 |   |   |   | 35,840 |   |   |   | 11,891 |   |
| Uninsured CitiAssist Custom       |   |                       | 79,480  |   |                     |   | 72,247 |   |   |   | 76,611 |   |   |   | 75,481 |   |
|                              |   | $                          | 173,245 |   |                     | $      | 111,377 |   |   | $ | 156,085 |   |   | $ | 110,329 |   |
| Provision for loan losses         |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| FFEL Program                      |   | $                          | 1,087   |   |                     | $      | 8,992 |   |   | $ | 4,415 |   |   | $ | 12,363 |   |
| Insured CitiAssist                |   |                       | 13,814  |   |                     |   | 7,641 |   |   |   | 15,684 |   |   |   | 11,499 |   |
| Uninsured CitiAssist Standard     |   |                       | 5,387   |   |                     |   | 3,055 |   |   |   | 27,141 |   |   |   | 6,137 |   |
| Uninsured CitiAssist Custom       |   |                       | 21,109  |   |                     |   | 25,138 |   |   |   | 38,047 |   |   |   | 35,969 |   |
|                              |   | $                          | 41,397  |   |                     | $      | 44,826 |   |   | $ | 85,287 |   |   | $ | 65,968 |   |
| Charge offs                       |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| FFEL Program                      |   | $                          | (3,381  | )      |                     | $      | (2,213 | ) |   | $ | (8,382 | ) |   | $ | (5,186 | ) |
| Insured CitiAssist                |   |                       | (4,563  | )      |                     |   | (4,820 | ) |   |   | (7,940 | ) |   |   | (7,240 | ) |
| Uninsured CitiAssist Standard     |   |                       | (8,788  | )      |                     |   | (1,879 | ) |   |   | (13,309 | ) |   |   | (2,515 | ) |
| Uninsured CitiAssist Custom       |   |                       | (28,691 | )      |                     |   | (22,253 | ) |   |   | (46,404 | ) |   |   | (39,149 | ) |
|                              |   | $                          | (45,423 | )      |                     | $      | (31,165 | ) |   | $ | (76,035 | ) |   | $ | (54,090 | ) |
| Recoveries                        |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| FFEL Program                      |   | $                          | – |   |                     | $      | – |   |   | $ | – |   |   | $ | – |   |
| Insured CitiAssist                |   |                       | – |   |                     |   | – |   |   |   | – |   |   |   | – |   |
| Uninsured CitiAssist Standard     |   |                       | 421     |   |                     |   | – |   |   |   | 659 |   |   |   | – |   |
| Uninsured CitiAssist Custom       |   |                       | 3,925   |   |                     |   | 3,699 |   |   |   | 7,569 |   |   |   | 6,530 |   |
|                              |   | $                          | 4,346   |   |                     | $      | 3,699 |   |   | $ | 8,228 |   |   | $ | 6,530 |   |
| Balance at end of period          |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| FFEL Program                      |   | $                          | 22,113  |   |                     | $      | 21,622 |   |   | $ | 22,113 |   |   | $ | 21,622 |   |
| Insured CitiAssist                |   |                       | 25,298  |   |                     |   | 12,771 |   |   |   | 25,298 |   |   |   | 12,771 |   |
| Uninsured CitiAssist Standard     |   |                       | 50,331  |   |                     |   | 15,513 |   |   |   | 50,331 |   |   |   | 15,513 |   |
| Uninsured CitiAssist Custom       |   |                       | 75,823  |   |                     |   | 78,831 |   |   |   | 75,823 |   |   |   | 78,831 |   |
|                              |   | $                          | 173,565 |   |                     | $      | 128,737 |   |   | $ | 173,565 |   |   | $ | 128,737 |   |

| (1)   | Beginning balance for the six months ended June 30, 2010 includes $7.0 million for the consolidation of loans from the Company’s previously off-balance sheet securitizations on January 1, 2010. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Borrowers must meet more rigorous eligibility criteria for forbearance. The eligibility assessment includes the borrower’s willingness and ability to make payments after the forbearance period and, depending on the situation, may require the borrower to submit supporting documentation. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                 |
| · | Forbearance periods are generally limited to two months. However, one up-to-six month forbearance term is available immediately after the termination of the grace period and before any payments have been made. Previously, forbearance periods were generally granted in six-month increments.    |
|   |                                                                                                                                                                                                                                                                                                 |
| · | All loan types have a cumulative lifetime cap on forbearance of 12 months. Previously, one loan type had a 24-month cap.                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                 |
| · | Minimum periods of payment performance, during which borrowers are required to make full payments, are required between grants of forbearance. Previously, there were no payment performance requirements.                                                                                           |
|   |                                                                                                                                                                                                                                                                                                 |
| · | The existing graduated repayment program, which allowed borrowers to make interest-only payments for a 24- or 48-month period is being phased out.  In addition, new requests for this program are no longer allowed.                                                                      |

|                                                                                                           |   | June 30, 2010(1) |      |   | December 31, 2009              |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|--------------------------------|--------|
|  (Dollars in thousands)                                                                                   |   | Insured          |      |   | Uninsured   Standard |   |   | Uninsured   Custom |   |   | Total |   |   | Insured |   |   | Uninsured   Standard   |   |   | Uninsured Custom |   |   | Total |   |
| Total private education loans                                                                                  |   | $                | 6,157,176 |   |                           | $      | 2,677,716 |   |   | $ | 1,042,308 |   |   |   | 9,877,200 |   |   | $ | 4,408,479 |   |   | $ | 2,000,260 |   |   | $ | 1,023,732 |   |   | $ | 7,432,471 |   |
| Private education loans in repayment                                                                           |   |             | 4,670,273 |   |                           |   | 775,763 |   |   |   | 775,787 |   |   |   | 6,221,823 |   |   |   | 2,752,005 |   |   |   | 501,365 |   |   |   | 694,630 |   |   |   | 3,948,000 |   |
| Private education loans in forbearance                                                                         |   |             | 210,756   |   |                           |   | 83,041 |   |   |   | 31,877 |   |   |   | 325,674 |   |   |   | 273,839 |   |   |   | 84,470 |   |   |   | 56,978 |   |   |   | 415,287 |   |
| Private education loans in forbearance as a percentage of private education loans in repayment and forbearance |   |             | 4.3       | %      |                           |   | 9.7 | % |   |   | 4.0 | % |   |   | 5.0 | % |   |   | 9.1 | % |   |   | 14.4 | % |   |   | 7.6 | % |   |   | 9.5 | % |
| Percent of private education loans that are delinquent 30 - 89 days                                            |   |             | 2.0       | %      |                           |   | 2.0 | % |   |   | 4.0 | % |   |   | 2.2 | % |   |   | 2.3 | % |   |   | 1.9 | % |   |   | 4.1 | % |   |   | 2.5 | % |
| Percent of private education loans that are delinquent 90 days or more                                         |   |             | 1.8       | %      |                           |   | 0.7 | % |   |   | 1.5 | % |   |   | 1.6 | % |   |   | 1.9 | % |   |   | 0.4 | % |   |   | 1.2 | % |   |   | 1.6 | % |
| Allowance for loan losses                                                                                      |   | $                | 25,298    |   |                           | $      | 50,331 |   |   | $ | 75,823 |   |   | $ | 151,452 |   |   | $ | 17,182 |   |   | $ | 31,217 |   |   | $ | 78,509 |   |   | $ | 126,908 |   |
| Private education loans covered by risk-sharing agreements with schools                                        |   |             | –   |   |                           |   | – |   |   |   | 447,614 |   |   |   | 447,614 |   |   |   | – |   |   |   | – |   |   |   | 482,423 |   |   |   | 482,423 |   |
| Year-to-date average of private education loans in repayment                                                   |   |             | 4,458,315 |   |                           |   | 597,634 |   |   |   | 763,330 |   |   |   | 5,819,279 |   |   |   | 2,372,212 |   |   |   | 273,478 |   |   |   | 600,392 |   |   |   | 3,246,082 |   |
| Year-to-date average of private education loans in repayment and forbearance                                   |   |             | 4,796,033 |   |                           |   | 707,783 |   |   |   | 819,262 |   |   |   | 6,323,078 |   |   |   | 2,655,263 |   |   |   | 319,543 |   |   |   | 656,031 |   |   |   | 3,630,837 |   |
| Annualized year-to-date net credit losses as a percentage of average loans in repayment                        |   |             | 0.4       | %      |                           |   | 4.2 | % |   |   | 10.2 | % |   |   | 2.0 | % |   |   | 0.7 | % |   |   | 3.4 | % |   |   | 10.7 | % |   |   | 2.8 | % |
| Annualized year-to-date net credit losses as a percentage of average loans in repayment and forbearance        |   |             | 0.3       | %      |                           |   | 3.6 | % |   |   | 9.5 | % |   |   | 1.9 | % |   |   | 0.6 | % |   |   | 2.9 | % |   |   | 9.8 | % |   |   | 2.5 | % |
| Allowance as a percentage of total loan balance                                                                |   |             | 0.4       | %      |                           |   | 1.9 | % |   |   | 7.3 | % |   |   | 1.5 | % |   |   | 0.4 | % |   |   | 1.6 | % |   |   | 7.7 | % |   |   | 1.7 | % |
| Allowance as a percentage of total loans in repayment                                                          |   |             | 0.5       | %      |                           |   | 6.5 | % |   |   | 9.8 | % |   |   | 2.4 | % |   |   | 0.6 | % |   |   | 6.2 | % |   |   | 11.3 | % |   |   | 3.2 | % |
| Allowance coverage of annualized year-to-date net credit losses (in years)                                     |   |             | 1.6       |   |                           |   | 2.0 | (2) |   |   | 1.0 |   |   |   | 1.3 |   |   |   | 1.1 |   |   |   | 3.3 | (2) |   |   | 1.2 |   |   |   | 1.4 |   |

| (1)   | Amounts presented above for June 30, 2010 include the impact of changes in accounting standards, effective January 1, 2010, which resulted in the consolidation of the Company’s previously unconsolidated private education loan securitization trust. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The Company began originating loans in this portfolio in January 2008, so few loans have entered repayment.  Accordingly, the amount of net credit losses is disproportionately low relative to the allowance for loan losses, which includes an allowance for loans not yet in repayment. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                           |   | June 30, 2010(1) |      |   | June 30, 2009                  |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|--------|--------------------------------|--------|
|  (Dollars in thousands)                                                                                   |   | Insured          |      |   | Uninsured   Standard |   |   | Uninsured   Custom |   |   | Total |   |   | Insured |   |   | Uninsured    Standard |   |   | Uninsured Custom |   |   | Total |   |
| Total private education loans                                                                                  |   | $                | 6,157,176 |   |                           | $      | 2,677,716 |   |   | $ | 1,042,308 |   |   |   | 9,877,200 |   |   | $ | 4,522,839 |   |   | $ | 536,230 |   |   | $ | 882,976 |   |   | $ | 5,942,045 |   |
| Private education loans in repayment                                                                           |   |             | 4,670,273 |   |                           |   | 775,763 |   |   |   | 775,787 |   |   |   | 6,221,823 |   |   |   | 2,467,833 |   |   |   | 267,018 |   |   |   | 595,594 |   |   |   | 3,330,444 |   |
| Private education loans in forbearance                                                                         |   |             | 210,756   |   |                           |   | 83,041 |   |   |   | 31,877 |   |   |   | 325,674 |   |   |   | 273,239 |   |   |   | 43,882 |   |   |   | 55,713 |   |   |   | 372,834 |   |
| Private education loans in forbearance as a percentage of private education loans in repayment and forbearance |   |             | 4.3       | %      |                           |   | 9.7 | % |   |   | 4.0 | % |   |   | 5.0 | % |   |   | 10.0 | % |   |   | 14.1 | % |   |   | 8.6 | % |   |   | 10.1 | % |
| Percent of private education loans that are delinquent 30 - 89 days                                            |   |             | 2.0       | %      |                           |   | 2.0 | % |   |   | 4.0 | % |   |   | 2.2 | % |   |   | 1.9 | % |   |   | 1.4 | % |   |   | 4.4 | % |   |   | 2.3 | % |
| Percent of private education loans that are delinquent 90 days or more                                         |   |             | 1.8       | %      |                           |   | 0.7 | % |   |   | 1.5 | % |   |   | 1.6 | % |   |   | 2.2 | % |   |   | 0.5 | % |   |   | 1.4 | % |   |   | 1.9 | % |
| Allowance for loan losses                                                                                      |   | $                | 25,298    |   |                           | $      | 50,331 |   |   | $ | 75,823 |   |   | $ | 151,452 |   |   | $ | 12,771 |   |   | $ | 15,513 |   |   | $ | 78,831 |   |   | $ | 107,115 |   |
| Private education loans covered by risk-sharing agreements with schools                                        |   |             | –   |   |                           |   | – |   |   |   | 447,614 |   |   |   | 447,614 |   |   |   | – |   |   |   | – |   |   |   | 453,784 |   |   |   | 453,784 |   |
| Year-to-date average of private education loans in repayment                                                   |   |             | 4,458,315 |   |                           |   | 597,634 |   |   |   | 763,330 |   |   |   | 5,819,279 |   |   |   | 2,266,374 |   |   |   | 211,940 |   |   |   | 586,970 |   |   |   | 3,065,284 |   |
| Year-to-date average of private education loans in repayment and forbearance                                   |   |             | 4,796,033 |   |                           |   | 707,783 |   |   |   | 819,262 |   |   |   | 6,323,078 |   |   |   | 2,538,521 |   |   |   | 245,908 |   |   |   | 639,954 |   |   |   | 3,424,383 |   |
| Annualized year-to-date net credit losses as a percentage of average loans in repayment                        |   |             | 0.4       | %      |                           |   | 4.2 | % |   |   | 10.2 | % |   |   | 2.0 | % |   |   | 0.6 | % |   |   | 2.4 | % |   |   | 11.1 | % |   |   | 2.8 | % |
| Annualized year-to-date net credit losses as a percentage of average loans in repayment and forbearance        |   |             | 0.3       | %      |                           |   | 3.6 | % |   |   | 9.5 | % |   |   | 1.9 | % |   |   | 0.6 | % |   |   | 2.0 | % |   |   | 10.2 | % |   |   | 2.5 | % |
| Allowance as a percentage of total loan balance                                                                |   |             | 0.4       | %      |                           |   | 1.9 | % |   |   | 7.3 | % |   |   | 1.5 | % |   |   | 0.3 | % |   |   | 2.9 | % |   |   | 8.9 | % |   |   | 1.8 | % |
| Allowance as a percentage of total loans in repayment                                                          |   |             | 0.5       | %      |                           |   | 6.5 | % |   |   | 9.8 | % |   |   | 2.4 | % |   |   | 0.5 | % |   |   | 5.8 | % |   |   | 13.2 | % |   |   | 3.2 | % |
| Allowance coverage of annualized year-to-date net credit losses (in years)                                     |   |             | 1.6       |   |                           |   | 2.0 | (2) |   |   | 1.0 |   |   |   | 1.3 |   |   |   | 0.9 |   |   |   | 3.1 | (2) |   |   | 1.2 |   |   |   | 1.3 |   |

| (1)   | Amounts presented above for June 30, 2010 include the impact of changes in accounting standards, effective January 1, 2010, which resulted in the consolidation of the Company’s previously unconsolidated private education loan securitization trust. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The Company began originating loans in this portfolio in January 2008, so few loans have entered repayment.  Accordingly, the amount of net credit losses is disproportionately low relative to the allowance for loan losses, which includes an allowance for loans not yet in repayment. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Six Months Ended |    |
|--------------------------------------------------------------|--------|------------------|---------|
|                                                         |   | June 30,         |    |
|                                                         |   | 2010             |    |   | 2009 |   |
| Student loan yield                                           |   |             | 2.76    | % |   |   | 2.76 | % |
| Floor income                                                 |   |             | 0.40    | % |   |   | 0.33 | % |
| Consolidation loan rebate fees                               |   |             | (0.39   | )% |   |   | (0.24 | )% |
| Accreted interest on residual interests                      |   |             | – |   |   |   | 0.25 | % |
| Amortization of deferred loan origination and purchase costs |   |             | (0.29   | )% |   |   | (0.30 | )% |
| Net yield                                                    |   |             | 2.48    | % |   |   | 2.80 | % |
| Cost of funds (1)                                            |   |             | (1.66   | )% |   |   | (1.88 | )% |
| Net interest margin                                          |   |             | 0.82    | % |   |   | 0.92 | % |

|                         |   | For the six months ended June 30, 2010 vs. the six months ended June 30, 2009 |   |
|------------------------------|--------|-------------------------------------------------------------------------------|--------|
|                         |   | Increase (decrease) due to change in:                                         |   |
| (Dollars in millions)        |   | Volume                                                                        |   |   | Rate |   |   | Net |   |
| Interest earning assets      |   | $                                                                             | 219.4  |   |   | $ | (70.7 | ) |   | $ | 148.7 |   |
| Interest bearing liabilities |   |                                                                          | 166.0  |   |   |   | (67.8 | ) |   |   | 98.2 |   |
| Net interest income          |   | $                                                                             | 53.4   |   |   | $ | (2.9 | ) |   | $ | 50.5 |   |

|                                                                      |   | Three Months Ended |    |   | Favorable     |   |    | Favorable     |   |
|---------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------|--------|---------|---------------|--------|
|                                                                      |   | June 30,           |    |   | (Unfavorable) |   |    | (Unfavorable) |   |
| (Dollars in thousands)                                                    |   | 2010               |    |   | 2009          |   |    | Change        |   |   | % Change |   |
| Net interest income                                                       |   | $                  | 94,459  |   |          | $      | 70,884  |          |   | $ | 23,575 |   |   |   | 33 | % |
| Provision for loan losses                                                 |   |               | (41,397 | )      |          |   | (44,826 | )             |   |   | 3,429 |   |   |   | 8 | % |
| Gains on loans sold                                                       |   |               | – |   |          |   | 17,864  |          |   |   | (17,864 | ) |   |   | (100 | )% |
| Fee and other income                                                      |   |               | 8,811   |   |          |   | 30,851  |          |   |   | (22,040 | ) |   |   | (71 | )% |
| Operating expenses                                                        |   |               | (34,348 | )      |          |   | (35,211 | )             |   |   | 863 |   |   |   | 2 | % |
| Provision for income taxes                                                |   |               | (6,704  | )      |          |   | (14,300 | )             |   |   | 7,596 |   |   |   | 53 | % |
| Net income                                                                |   | $                  | 20,821  |   |          | $      | 25,262  |          |   | $ | (4,441 | ) |   |   | (18 | )% |
| Total operating expenses as a percentage of average managed student loans |   |               | 0.31    | %      |          |   | 0.32    | %             |   |   | 0.01 | % |   |   |   |   |
| Return on average equity                                                  |   |               | 6.4     | %      |          |   | 6.5     | %             |   |   | (0.1 | )% |   |   |   |   |
| Effective tax rate                                                        |   |               | 24.4    | %      |          |   | 36.1    | %             |   |   | 11.7 | % |   |   |   |   |

|                                                                      |   | Six Months Ended |    |   | Favorable     |   |    | Favorable     |   |
|---------------------------------------------------------------------------|--------|------------------|---------|--------|---------------|--------|---------|---------------|--------|
|                                                                      |   | June 30,         |    |   | (Unfavorable) |   |    | (Unfavorable) |   |
| (Dollars in thousands)                                                    |   | 2010             |    |   | 2009          |   |    | Change        |   |   | % Change |   |
| Net interest income                                                       |   | $                | 179,432 |   |          | $      | 128,962 |          |   | $ | 50,470 |   |   |   | 39 | % |
| Provision for loan losses                                                 |   |             | (85,287 | )      |          |   | (65,968 | )             |   |   | (19,319 | ) |   |   | (29 | )% |
| Gains on loans sold                                                       |   |             | – |   |          |   | 17,864  |          |   |   | (17,864 | ) |   |   | (100 | )% |
| Fee and other income                                                      |   |             | 9,396   |   |          |   | 37,809  |          |   |   | (28,413 | ) |   |   | (75 | )% |
| Operating expenses                                                        |   |             | (75,682 | )      |          |   | (70,070 | )             |   |   | (5,612 | ) |   |   | (8 | )% |
| Provision for income taxes                                                |   |             | (6,579  | )      |          |   | (15,813 | )             |   |   | 9,234 |   |   |   | 58 | % |
| Net income                                                                |   | $                | 21,280  |   |          | $      | 32,784  |          |   | $ | (11,504 | ) |   |   | (35 | )% |
| Total operating expenses as a percentage of average managed student loans |   |             | 0.34    | %      |          |   | 0.32    | %             |   |   | (0.02 | )% |   |   |   |   |
| Return on average equity                                                  |   |             | 3.3     | %      |          |   | 4.2     | %             |   |   | (0.9 | )% |   |   |   |   |
| Effective tax rate                                                        |   |             | 23.6    | %      |          |   | 32.5    | %             |   |   | 8.9 | % |   |   |   |   |

|                                                                                     |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
| (Dollars in thousands)                                                                   |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Student loans securitized (1)                                                            |   | $                          | – |   |                     | $      | – |   |   | $ | 1,899,710 |   |   | $ | 587,285 |   |
| Student loans funded through the Conduit (1)                                        |   |                       | – |   |                     |   | 8,543,157 |   |   |   | 547,541 |   |   |   | 8,543,157 |   |
| Total student loans funded through securitization financings (1)                         |   | $                          | – |   |                     | $      | 8,543,157 |   |   | $ | 2,447,251 |   |   | $ | 9,130,442 |   |
|                                                                                     |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net proceeds from student loans securitized (2)                                          |   | $                          | – |   |                     | $      | – |   |   | $ | 1,459,441 |   |   | $ | 546,126 |   |
| Net proceeds from student loans funded through the Conduit during the current period (2) |   |                       | – |   |                     |   | 8,492,288 |   |   |   | 533,632 |   |   |   | 8,492,288 |   |
| Total net proceeds from securitization financings(2)                                     |   | $                          | – |   |                     |   | 8,492,288 |   |   | $ | 1,993,073 |   |   | $ | 9,038,414 |   |

| (1)   | Amounts represent the carrying value of the student loans securitized as of the securitization date. |
|-----------------|------------------------------------------------------------------------------------------------------|

| (2)   | Amounts represent net proceeds of loans securitized or funded through the Conduit as of the securitization / funding date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)                                              |   | June 30, 2010 |       |   | December 31, 2009 |   |
|---------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                |   |          |       |   |              |   |
| Total on-balance sheet student loans securitized (1)                |   | $             | 22,998,102 |   |              | $      | 7,649,159 |   |
| Total on-balance sheet student loans funded through the Conduit     |   |          | 10,185,535 |   |              |   | 10,060,877 |   |
| Total off-balance sheet student loans securitized (2)               |   |          | –    |   |              |   | 13,896,812 |   |
| Total long-term secured borrowings (3)                              |   |          | 31,675,596 |   |              |   | 16,999,976 |   |
| Residual interests from off-balance sheet student loans securitized |   |          | –    |   |              |   | 820,291 |   |
| Servicing assets from off-balance sheet student loans securitized   |   |          | –    |   |              |   | 176,587 |   |

| (1)   | Amounts include securitized loan balances from seventeen on-balance sheet securitizations as of June 30, 2010 and five as of December 31, 2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Amounts include securitized loan balances from ten off-balance sheet securitizations as December 31, 2009. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (3)   | Amounts include secured borrowings from the Company’s on-balance sheet securitizations and the Conduit. |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| ● | The Conduit:  This program provides additional liquidity support to eligible student lenders by providing funding for FFEL Program Stafford and PLUS loans first disbursed on or after October 1, 2003 and before July 1, 2009, and fully disbursed by September 30, 2009.  The Company receives funding equal to 97% of the principal and interest to be capitalized of the pledged student loans through the issuance of a funding note which is purchased by the Conduit.  The funding notes mature no later than January 2014.  As of June 30, 2010, the Conduit is not available for new funding. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| ● | The TALF:  This facility provides additional liquidity support to the asset-backed securities market.  The Company completed two private education loan securitizations under this facility during the period it was available.  This facility expired on March 31, 2010.  Prior to the expiration of this facility the Company also executed a private education loan securitization with investors directly through the capital markets.  In addition, one of its TALF securitizations included investors that did not utilize funding from the facility.                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| ● | The Participation Program and Purchase Programs:  The Participation Program provides lenders with short-term liquidity for new FFEL Program loan originations.  Under the Purchase Program, the Department purchases eligible FFEL Program loans at a price that exceeds the outstanding principal, accrued interest and origination fees, resulting in gains on the sale of loans.  These programs are only available for eligible FFEL Program loans disbursed for the 2009 – 2010 academic year until the programs’ expiration later this year.                                              |

|                                                                                                                         |                                                                                   |   | Six Months EndedJune 30,                                                                     |
|------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|
| (Dollars in billions)                                                                                                        |                                                                                   |   | 2010                                                                                         |   | 2009 |
|                                                                                                                         |                                                                                   |   |                                                                                         |   |
| Sources of Cash:                                                                                                             |                                                                                   |   |                                                                                         |
| Proceeds related to the Participation and Purchase Programs, net of principal repayments                                     | $          2.5                       |   | $           1.6                       |
| Borrower repayments on student loans and other loan reductions                                                               | 1.7                                                                                    |   | 0.9                                                                                          |
| Proceeds from student loans securitized                                                                                      | 1.5                                                                                    |   | 0.5(1)                                                                                       |
| Proceeds from secured borrowings related to the Conduit, net of principal repayments                                         | –                                                                                |   |           8.5                              |
|                                                                                                                         |                                                                                   |   |                                                                                         |
| Uses of Cash:                                                                                                                |                                                                                   |   |                                                                                         |
| Loan disbursements and other procurement activities                                                                          | $         (3.3)                           |   | $          (3.1)                           |
| Repayments of borrowings with CBNA, net of proceeds                                                                          | (1.4)                                                                                  |   |           (8.4)                            |
| Repayments of secured borrowings related to securitizations                                                                  | (0.9)                                                                                  |   | (0.1)                                                                                        |
| Payment of funding commitment fee and fee on undrawn balance to CBNA under the Amended and Restated Omnibus Credit Agreement | (0.1)                                                                                  |   | –                                                                                      |
|                                                                                                                         |                                                                                   |   |                                                                                         |
| (Decrease) increase in cash during the period:                                                                               | $             – |   | $              – |

|   | (1) | Includes proceeds from whole loan sales |
|--------|-----|-----------------------------------------|

|                      |   | June 30, |   |
|---------------------------|--------|----------|--------|
| (Dollars in millions)     |   | 2010     |   |   | 2009 |   |
| 100 basis points          |   | Increase |   |   | Decrease |   |   | Increase |   |   | Decrease |   |
| Change in interest income |   | $        | (28.1  | ) |   | $ | 68.6 |   |   | $ | (7.3 | ) |   | $ | 12.1 |   |

| · | Lender –At June 30, 2010, the Company had outstanding borrowings of $8.1 billion under the Original Omnibus Credit Agreement.  The Amended and Restated Omnibus Credit Agreement as executed provided up to $6.6 billion in aggregate credit for new borrowings, including separate tranches (with their own sublimits and pricing) for overnight funding, FFEL Program loan funding, private education loan funding and illiquid asset funding.  As a result of completing three loan securitizations during the first seven months of the year, the Company was able to reduce the aggregate commitment amount under the credit agreement by a total of $2.0 billion to $4.6 billion.  The initial term of the Amended and Restated Omnibus Credit Agreement expires on December 30, 2010 and all new borrowings will be due and payable on or before this date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | Trustee – An affiliate of Citigroup acts as eligible lender trustee for the Company pursuant to a trust agreement since the Company does not meet the definition of an eligible lender in the Higher Education Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | Originating Lender – The Company originates its private education loans through an agreement with an affiliate of Citigroup, under its authority as a federally chartered bank, providing certain benefits to which the Company would not otherwise be entitled. The Company subsequently acquires such loans pursuant to the terms of a separate agreement with the affiliate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | Service Provider – The majority of the work to originate and service the Company’s FFEL Program and private education loans is performed by an affiliate of Citigroup. Citigroup also provides many other services to the Company, including, but not limited to, cash management, tax return preparation, data processing, telecommunications, payroll processing and benefits administration. These arrangements provide economies of scale that significantly reduce the Company’s operating expenses.                                                                                                                                                                                                                                                                                                                                                                            |

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

|   | The Student Loan Corporation |                                                               |
|--------|------------------------------|--------------------------------------------------------------------|
|   |                         |                                                               |   |
|   |                         |                                                               |   |
|   |                         |                                                               |   |
|   |                         |                                                               |   |
|   |                         |                                                               |   |
|   | By:                          | /s/ Joseph P. Guage                                                |   |
|   |                         | Joseph P. GuageChief Financial Officer and Duly Authorized Officer |
|   |                         | (Principal Financial Officer)                                      |

| 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).                        |
|     |                                                                                                                                                                           |
| 10.10.1* | Amendment No. 1, dated as of February 11, 2010, to the Amended and Restated Omnibus Credit Agreement between the Company and CBNA.                                        |
|     |                                                                                                                                                                           |
| 10.10.2* | Notice No. 2 dated as of July 7, 2010, amending the Amended and Restated Omnibus Credit Agreement between the Company and CBNA.                                           |
|     |                                                                                                                                                                           |
| 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. |
|     |                                                                                                                                                                           |