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  • 1. SLM CORPORATION Segment Results and Reconciliations to GAAP (Dollars in millions) (Unaudited) Three Months Ended March 31, 2008 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $494 $- $- $494 $(30) $464 FFELP Consolidation Loans 989 - - 989 (152) 837 Private Education Loans 749 - - 749 (305) 444 Other Loans 23 - - 23 - 23 Cash and investments 142 - 6 148 (24) 124 Total interest income 2,397 - 6 2,403 (511) 1,892 Total interest expense 1,824 7 5 1,836 (220) 1,616 Net interest income (loss) 573 (7) 1 567 (291) 276 Less: provisions for loan losses 181 - - 181 (44) 137 Net interest income (loss) after provisions for loan losses 392 (7) 1 386 (247) 139 Contingency fee revenue - 85 - 85 - 85 Collections revenue - 56 - 56 1 57 Guarantor servicing fees - - 35 35 - 35 Other income (loss) 44 - 51 95 (201) (106) Total other income 44 141 86 271 (200) 71 Restructuring expense 15 1 5 21 - 21 Operating expenses 164 105 70 339 16 355 Total other expenses 179 106 75 360 16 376 Income (loss) before income taxes and minority interest 257 28 12 297 (463) (166) in net earnings of subsidiaries Income tax expense (benefit)(1) 94 10 5 109 (171) (62) Minority interest in net earnings of subsidiaries - - - - - - Net income (loss) $163 $18 $7 $188 $(292) $(104) (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. Three Months Ended June 30, 2008 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $524 $- $- $524 $(26) $498 FFELP Consolidation Loans 908 - - 908 (138) 770 Private Education Loans 665 - - 665 (256) 409 Other Loans 21 - - 21 - 21 Cash and investments 81 - 5 86 (15) 71 Total interest income 2,199 - 5 2,204 (435) 1,769 Total interest expense 1,605 7 5 1,617 (251) 1,366 Net interest income (loss) 594 (7) - 587 (184) 403 Less: provisions for loan losses 192 - - 192 (49) 143 Net interest income (loss) after provisions for loan losses 402 (7) - 395 (135) 260 Contingency fee revenue - 84 - 84 - 84 Collections revenue - 27 - 27 (1) 26 Guarantor servicing fees - - 24 24 - 24 Other income 62 - 45 107 322 429 Total other income 62 111 69 242 321 563 Restructuring expense 31 5 11 47 - 47 Operating expenses 155 110 73 338 16 354 Total other expenses 186 115 84 385 16 401 Income (loss) before income taxes and minority interest in net earnings of subsidiaries 278 (11) (15) 252 170 422 Income tax expense (benefit)(1) 103 (4) (6) 93 60 153 Minority interest in net earnings of subsidiaries - 3 - 3 - 3 Net income (loss) $175 $(10) $(9) $156 $110 $266 (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. -1A-
  • 2. SLM CORPORATION Segment Results and Reconciliations to GAAP (Dollars in millions) (Unaudited) Three Months Ended September 30, 2008 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $612 $- $- $612 $(96) $516 FFELP Consolidation Loans 995 - - 995 (164) 831 Private Education Loans 678 - - 678 (233) 445 Other Loans 20 - - 20 - 20 Cash and investments 62 - 6 68 (11) 57 Total interest income 2,367 - 6 2,373 (504) 1,869 Total interest expense 1,651 6 4 1,661 (267) 1,394 Net interest income (loss) 716 (6) 2 712 (237) 475 Less: provisions for loan losses 263 - - 263 (76) 187 Net interest income (loss) after provisions for loan losses 453 (6) 2 449 (161) 288 Contingency fee revenue - 89 - 89 - 89 Collections revenue (loss) - (169) - (169) (2) (171) Guarantor servicing fees - - 37 37 - 37 Other income (loss) 55 - 51 106 (233) (127) Total other income (loss) 55 (80) 88 63 (235) (172) Restructuring expense - 4 7 11 - 11 Operating expenses 142 106 68 316 51 367 Total other expenses 142 110 75 327 51 378 Income (loss) before income taxes and minority interest in net earnings of subsidiaries 366 (196) 15 185 (447) (262) Income tax expense (benefit)(1) 134 (73) 6 67 (171) (104) Minority interest in net earnings of subsidiaries - 1 - 1 - 1 Net income (loss) $232 $(124) $9 $117 $(276) $(159) (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. Three Months Ended December 31, 2008 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $586 $- $- $586 $(70) $516 FFELP Consolidation Loans 856 - - 856 (114) 742 Private Education Loans 659 - - 659 (220) 439 Other Loans 18 - - 18 - 18 Cash and investments 21 - 7 28 (3) 25 Total interest income 2,140 - 7 2,147 (407) 1,740 Total interest expense 1,584 6 4 1,594 (64) 1,530 Net interest income (loss) 556 (6) 3 553 (343) 210 Less: provisions for loan losses 392 - - 392 (140) 252 Net interest income (loss) after provisions for loan losses 164 (6) 3 161 (203) (42) Contingency fee revenue - 82 - 82 - 82 Collections revenue (loss) - 22 - 22 1 23 Guarantor servicing fees - - 26 26 - 26 Other income 18 - 52 70 (243) (173) Total other income 18 104 78 200 (242) (42) Restructuring expense 3 2 1 6 - 6 Other operating expenses 129 76 65 270 10 280 Total operating expenses 132 78 66 276 10 286 Income (loss) before income taxes and minority interest in net earnings of subsidiaries 50 20 15 85 (455) (370) Income tax expense (benefit)(1) 5 9 5 19 (174) (155) Minority interest in net earnings of subsidiaries - 1 - 1 - 1 Net income (loss) $45 $10 $10 $65 $(281) $(216) (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. -1B-
  • 3. SLM CORPORATION Segment Results and Reconciliations to GAAP (Dollars in millions) (Unaudited) Year Ended December 31, 2008 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $2,216 $- $- $2,216 $(221) $1,995 FFELP Consolidation Loans 3,748 - - 3,748 (569) 3,179 Private Education Loans 2,752 - - 2,752 (1,015) 1,737 Other Loans 83 - - 83 - 83 Cash and investments 304 - 25 329 (53) 276 Total interest income 9,103 - 25 9,128 (1,858) 7,270 Total interest expense 6,665 25 19 6,709 (804) 5,905 Net interest income (loss) 2,438 (25) 6 2,419 (1,054) 1,365 Less: provisions for loan losses 1,029 - - 1,029 (309) 720 Net interest income (loss) after provisions for loan losses 1,409 (25) 6 1,390 (745) 645 Contingency fee revenue - 340 - 340 - 340 Collections revenue (loss) - (63) - (63) (1) (64) Guarantor servicing fees - - 121 121 - 121 Other income (loss) 180 - 199 379 (356) 23 Total other income 180 277 320 777 (357) 420 Restructuring expense 49 12 23 84 - 84 Other operating expenses 589 398 277 1,264 93 1,357 Total operating expenses 638 410 300 1,348 93 1,441 Income (loss) before income taxes and minority interest 951 (158) 26 819 (1,195) (376) in net earnings of subsidiaries Income tax expense (benefit)(1) 336 (56) 9 289 (456) (167) Minority interest in net earnings of subsidiaries - 4 - 4 - 4 Net income (loss) $615 $(106) $17 $526 $(739) $(213) (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. -1C-
  • 4. SLM CORPORATION Segment Results and Reconciliations to GAAP (Dollars in millions) (Unaudited) Three Months Ended March 31, 2007 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $695 $- $- $695 $(244) $451 FFELP Consolidation Loans 1,331 - - 1,331 (316) 1,015 Private Education Loans 658 - - 658 (320) 338 Other Loans 28 - - 28 - 28 Cash and investments 162 - 2 164 (50) 114 Total interest income 2,874 - 2 2,876 (930) 1,946 Total interest expense 2,220 7 5 2,232 (700) 1,532 Net interest income (loss) 654 (7) (3) 644 (230) 414 Less: provisions for loan losses 198 - 1 199 (49) 150 Net interest income (loss) after provisions for loan losses 456 (7) (4) 445 (181) 264 Contingency fee revenue - 87 - 87 - 87 Collections revenue - 65 - 65 1 66 Guarantor servicing fees - - 39 39 - 39 Other income 44 - 52 96 231 327 Total other income 44 152 91 287 232 519 Operating expenses 171 93 68 332 24 356 Income before income taxes and minority interest in net earnings of subsidiaries 329 52 19 400 27 427 Income tax expense(1) 122 19 7 148 162 310 Minority interest in net earnings of subsidiaries - 1 - 1 - 1 Net income (loss) $207 $32 $12 $251 $(135) $116 (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. Three Months Ended June 30, 2007 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $719 $- $- $719 $(208) $511 FFELP Consolidation Loans 1,391 - - 1,391 (304) 1,087 Private Education Loans 692 - - 692 (363) 329 Other Loans 27 - - 27 - 27 Cash and investments 182 - 7 189 (47) 142 Total interest income 3,011 - 7 3,018 (922) 2,096 Total interest expense 2,371 7 5 2,383 (686) 1,697 Net interest income (loss) 640 (7) 2 635 (236) 399 Less: provisions for loan losses 247 - - 247 (99) 148 Net interest income (loss) after provisions for loan losses 393 (7) 2 388 (137) 251 Contingency fee revenue - 80 - 80 - 80 Collections revenue - 77 - 77 - 77 Guarantor servicing fees - - 30 30 - 30 Other income 59 - 49 108 925 1,033 Total other income 59 157 79 295 925 1,220 Operating expenses 182 96 104 382 17 399 Income (loss) before income taxes and minority interest in net earnings of subsidiaries 270 54 (23) 301 771 1,072 Income tax expense (benefit)(1) 100 20 (9) 111 (6) 105 Minority interest in net earnings of subsidiaries - 1 - 1 - 1 Net income (loss) $170 $33 $(14) $189 $777 $966 (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. -1D-
  • 5. SLM CORPORATION Segment Results and Reconciliations to GAAP (Dollars in millions) (Unaudited) Three Months Ended September 30, 2007 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $729 $- $- $729 $(183) $546 FFELP Consolidation Loans 1,445 - - 1,445 (300) 1,145 Private Education Loans 753 - - 753 (360) 393 Other Loans 26 - - 26 - 26 Cash and investments 251 - 6 257 (46) 211 Total interest income 3,204 - 6 3,210 (889) 2,321 Total interest expense 2,534 7 5 2,546 (667) 1,879 Net interest income (loss) 670 (7) 1 664 (222) 442 Less: provisions for loan losses 200 - - 200 (57) 143 Net interest income (loss) after provisions for loan losses 470 (7) 1 464 (165) 299 Contingency fee revenue - 76 - 76 - 76 Collections revenue - 53 - 53 - 53 Guarantor servicing fees - - 46 46 - 46 Other income (loss) 46 - 63 109 (486) (377) Total other income (loss) 46 129 109 284 (486) (202) Operating expenses 164 94 79 337 19 356 Income (loss) before income taxes and minority interest in net earnings of subsidiaries 352 28 31 411 (670) (259) Income tax expense (benefit)(1) 130 11 11 152 (67) 85 Minority interest in net earnings of subsidiaries - - - - - - Net income (loss) $222 $17 $20 $259 $(603) $(344) (2) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. Three Months Ended December 31, 2007 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $705 $- $- $705 (152) 553 FFELP Consolidation Loans 1,355 - - 1,355 (259) 1,096 Private Education Loans 731 - - 731 (335) 396 Other Loans 25 - - 25 - 25 Cash and investments 273 - 6 279 (38) 241 Total interest income 3,089 - 6 3,095 (784) 2,311 Total interest expense 2,471 7 5 2,483 (506) 1,977 Net interest income (loss) 618 (7) 1 612 (278) 334 Less: provisions for loan losses 750 - - 750 (176) 574 Net interest income (loss) after provisions for loan losses (132) (7) 1 (138) (102) (240) Contingency fee revenue - 92 - 92 - 92 Collections revenue - 74 - 74 2 76 Guarantor servicing fees - - 41 41 - 41 Other income (loss) 44 - 55 99 (1,349) (1,250) Total other income (loss) 44 166 96 306 (1,347) (1,041) Restructuring expense 19 2 2 23 - 23 Other operating expenses 172 104 88 364 54 418 Total operating expenses 191 106 90 387 54 441 Income (loss) before income taxes and minority interest in net earnings of subsidiaries (279) 53 7 (219) (1,503) (1,722) Income tax expense (benefit)(1) (103) 19 3 (81) (7) (88) Minority interest in net earnings of subsidiaries - 1 - 1 - 1 Net income (loss) $(176) $33 $4 $(139) (1,496) (1,635) (2) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. -1E-
  • 6. SLM CORPORATION Segment Results and Reconciliations to GAAP (Dollars in millions) (Unaudited) Year Ended December 31, 2007 Corporate Total quot;Core Total Lending APG and Other Earningsquot; Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $2,848 $- $- $2,848 $(787) $2,061 FFELP Consolidation Loans 5,522 - - 5,522 (1,179) 4,343 Private Education Loans 2,835 - - 2,835 (1,379) 1,456 Other Loans 106 - - 106 - 106 Cash and investments 868 - 21 889 (181) 708 Total interest income 12,179 - 21 12,200 (3,526) 8,674 Total interest expense 9,597 27 21 9,645 (2,559) 7,086 Net interest income (loss) 2,582 (27) - 2,555 (967) 1,588 Less: provisions for loan losses 1,394 - 1 1,395 (380) 1,015 Net interest income (loss) after provisions for loan losses 1,188 (27) (1) 1,160 (587) 573 Contingency fee revenue - 336 - 336 - 336 Collections revenue - 269 - 269 3 272 Guarantor servicing fees - - 156 156 - 156 Other income (loss) 194 - 218 412 (679) (267) Total other income 194 605 374 1,173 (676) 497 Restructuring expense 19 2 2 23 - 23 Other operating expenses 690 388 339 1,417 112 1,529 Total operating expenses 709 390 341 1,440 112 1,552 Income (loss) before income taxes and minority interest 673 188 32 893 (1,375) (482) in net earnings of subsidiaries Income tax expense(1) 249 70 12 331 81 412 Minority interest in net earnings of subsidiaries - 2 - 2 - 2 Net income (loss) $424 $116 $20 $560 $(1,456) $(896) (1) - Income taxes are based on a percentage of net income before tax for the individual reportable segment. -1F-
  • 7. SLM CORPORATION Reconciliations of quot;Core Earningsquot; Net Income (Loss) to GAAP Net Income (Loss): (Dollars in millions, except per share amounts) (Unaudited) Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date quot;Core Earningsquot; net income(a) $188 $156 $117 $65 $526 quot;Core Earningsquot; adjustments: Net impact of securitization accounting (79) (247) (148) 32 (442) Net impact of derivative accounting (363) 451 (206) (442) (560) Net impact of Floor Income (6) (19) (43) (35) (102) Net impact of acquired intangibles (15) (15) (50) (10) (91) Total quot;Core Earningsquot; adjustments before income taxes (463) 170 (447) (455) (1,195) Net tax effect(b) 171 (60) 171 174 456 Total quot;Core Earningsquot; adjustments (292) 110 (276) (281) (739) GAAP net income (loss) $(104) $266 $(159) $(216) $(213) GAAP diluted earnings (loss) per common share $(0.28) $0.50 $(0.40) $(0.52) $(0.69) (a)quot;Core Earningsquot; diluted earnings (loss) per common share $0.34 $0.27 $0.19 $0.08 $0.89 (b) Such tax effect is based upon the Company's quot;Core Earningsquot; effective tax rate for the respective period. Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2007 2007 2007 2007 To-Date quot;Core Earningsquot; net income (loss)(a) $251 $189 $259 $(139) $560 quot;Core Earningsquot; adjustments: Net impact of securitization accounting 422 (15) (157) (2) 247 Net impact of derivative accounting (332) 842 (454) (1,397) (1,341) Net impact of Floor Income (39) (39) (40) (50) (169) Net impact of acquired intangibles (24) (17) (19) (54) (112) Total quot;Core Earningsquot; adjustments before income taxes 27 771 (670) (1,503) (1,375) Net tax effect(b) (162) 6 67 7 (81) Total quot;Core Earningsquot; adjustments (135) 777 (603) (1,496) (1,456) GAAP net income (loss) $116 $966 $(344) $(1,635) $(896) GAAP diluted earnings (loss) per common share $0.26 $1.03 $(0.85) $(3.98) $(2.26) (a)quot;Core Earningsquot; diluted earnings (loss) per common share $0.57 $0.43 $0.59 $(0.36) $1.23 (b) Such tax effect is based upon the Company's quot;Core Earningsquot; effective tax rate. For the respective quarters in 2007 and the December 31, 2007 year ending, the quot;Core Earningsquot; effective tax rate is different than GAAP primarily from the exclusion of the permanent income tax impact for the equity forward contracts. The Company settled all of the equity forward contracts in January 2008. -2-
  • 8. SLM CORPORATION Condensed Statements of Income (Dollars in millions, except per share amounts) (Unaudited) Quarters Ended Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date 2007 2007 2007 2007 To-Date Net interest income $276 $403 $475 $210 $1,365 $414 $399 $442 $334 $1,588 Less: provisions for loan losses 137 143 187 252 720 150 148 143 574 1,015 Net interest income (loss) after provisions for loan losses 139 260 288 (42) 645 264 251 299 (240) 573 Gains on student loan securitizations - - - - - 367 - - - 367 Servicing and securitization revenue 108 2 65 88 262 252 133 29 23 437 Contingency fee revenue 85 84 89 82 340 87 80 76 92 336 Collections revenue (loss) 57 26 (171) 23 (64) 66 77 53 76 272 Guarantor servicing fees 35 24 37 26 121 39 30 46 41 156 Other income (loss) (214) 427 (192) (261) (239) (292) 900 (406) (1,273) (1,071) Restructuring expenses 21 47 11 6 84 - - - 23 23 Operating expenses 355 354 367 280 1,357 356 399 356 418 1,529 Income tax expense (benefit) (62) 153 (104) (155) (167) 310 105 85 (88) 412 Minority interest in net earnings of subsidiaries - 3 1 1 4 1 1 - 1 2 Net income (loss) (104) 266 (159) (216) (213) ### 116 966 (344) (1,635) (896) Preferred stock dividends 29 27 27 27 111 9 9 9 10 37 Net income (loss) attributable to common stock $(133) $239 $(186) $(243) $(324) $107 $957 $(353) $(1,645) $(933) Basic earnings (loss) per common share $(0.28) $0.51 $(0.40) $(0.52) $(0.69) $0.26 $2.32 $(0.85) $(3.98) $(2.26) Diluted earnings (loss) per common share $(0.28) $0.50 $(0.40) $(0.52) $(0.69) $0.26 $1.03 $(0.85) $(3.98) $(2.26) Dividends per common share $- $- $- $- $- $0.25 $- $- $- $0.25 -3-
  • 9. SLM CORPORATION quot;Core Earningsquot; Basis Student Loan Spread (Unaudited) Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date quot;Core Earningsquot; basis student loan yield 6.35 % 5.75 % 5.72 % 5.35 % 5.77 % Consolidation Loan Rebate Fees (0.55) (0.54) (0.52) (0.49) (0.52) Repayment Borrower Benefits (0.11) (0.12) (0.11) (0.09) (0.11) Premium and discount amortization (0.36) (0.18) 0.09 (0.15) (0.14) quot;Core Earningsquot; basis student loan net yield 5.33 4.91 5.18 4.62 5.00 quot;Core Earningsquot; basis student loan cost of funds (3.86) (3.26) (3.28) (3.13) (3.37) quot;Core Earningsquot; basis student loan spread, before 2008 ABCP Facility Fees(1) 1.47 % 1.65 % 1.90 % 1.49 % 1.63 % Average Balances (in millions of dollars) On-balance sheet student loans $129,341 $133,748 $138,606 $144,826 $136,658 Off-balance sheet student loans 39,163 38,175 36,864 36,164 37,586 Managed student loans $168,504 $171,923 $175,470 $180,990 $174,244 (1) The impact of the 2008 ABCP Facility Fees is excluded from the student loan spread for all quarters in 2008, and for the year ended December 31, 2008. Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2007 2007 2007 2007 To-Date quot;Core Earningsquot; basis student loan yield 8.31 % 8.27 % 8.28 % 7.69 % 8.12 % Consolidation Loan Rebate Fees (0.58) (0.57) (0.57) (0.56) (0.57) Repayment Borrower Benefits (0.11) (0.12) (0.10) (0.11) (0.11) Premium and discount amortization (0.17) (0.19) (0.17) (0.17) (0.17) quot;Core Earningsquot; basis student loan net yield 7.45 7.39 7.44 6.85 7.27 quot;Core Earningsquot; basis student loan cost of funds (5.68) (5.71) (5.75) (5.29) (5.60) quot;Core Earningsquot; basis student loan spread 1.77 % 1.68 % 1.69 % 1.56 % 1.67 % Average Balances (in millions of dollars) On-balance sheet student loans $101,499 $108,865 $114,571 $121,685 $111,719 Off-balance sheet student loans 44,663 43,432 41,526 40,084 42,411 Managed student loans $146,162 $152,297 $156,097 $161,769 $154,130 -4-
  • 10. SLM CORPORATION Student Loan Spread Analysis - GAAP (Unaudited) Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year On-Balance Sheet 2008 2008 2008 2008 To-Date Student loan yield, before Floor Income 6.12 % 5.54 % 5.57 % 5.21 % 5.60 % Gross Floor Income 0.36 0.40 0.16 0.22 0.28 Consolidation Loan Rebate Fees (0.59) (0.57) (0.54) (0.51) (0.55) Repayment Borrower Benefits (0.12) (0.12) (0.12) (0.09) (0.11) Premium and discount amortization (0.35) (0.21) 0.07 (0.16) (0.16) Student loan net yield 5.42 5.04 5.14 4.67 5.06 Student loan cost of funds (4.44) (3.52) (3.43) (3.76) (3.78) Student loan spread, before 2008 ABCP Facility Fees(1) 0.98 % 1.52 % 1.71 % 0.91 % 1.28 % Average Balances (in millions of dollars) On-balance sheet student loans $129,341 $133,748 $138,606 $144,826 $136,658 (1) The impact of the 2008 ABCP Facility Fees is excluded from the student loan spread for all quarters in 2008 and for the year ended December 31, 2008. Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year On-Balance Sheet 2007 2007 2007 2007 To-Date Student loan yield, before Floor Income 8.15 % 8.05 % 8.08 % 7.48 % 7.92 % Gross Floor Income 0.02 0.02 0.04 0.09 0.05 Consolidation Loan Rebate Fees (0.66) (0.64) (0.62) (0.61) (0.63) Repayment Borrower Benefits (0.13) (0.13) (0.11) (0.12) (0.12) Premium and discount amortization (0.17) (0.20) (0.17) (0.18) (0.18) Student loan net yield 7.21 7.10 7.22 6.66 7.04 Student loan cost of funds (5.57) (5.63) (5.69) (5.49) (5.60) Student loan spread 1.64 1.47 % 1.53 % 1.17 % 1.44 % Average Balances (in millions of dollars) On-balance sheet student loans $101,499 $108,865 $114,571 $121,685 $111,719 -5-
  • 11. SLM CORPORATION Servicing & Securitization Revenue (Dollars in thousands) (Unaudited) Quarters Ended Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date 2007 2007 2007 2007 To-Date Servicing revenue $63,713 $63,016 $61,145 $59,601 $247,475 $77,042 $74,181 $69,599 $64,848 $285,670 Securitization revenue 43,929 (61,386) 3,845 27,956 14,344 174,896 58,806 (40,716) (41,559) 151,427 Total servicing & securitization revenue $107,642 $1,630 $64,990 $87,557 $261,819 $251,938 $132,987 $28,883 $23,289 $437,097 Average Balance Managed Student Loans (Dollars in millions) Quarters Ended Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date 2007 2007 2007 2007 To-Date Average on-balance sheet student loans $129,341 $133,748 $138,606 $144,826 $136,658 $101,499 $108,865 $114,571 $121,685 $111,719 Average off-balance sheet student loans 39,163 38,175 36,864 36,164 37,586 44,663 43,432 41,526 40,084 42,411 Average Managed student loans $168,504 $171,923 $175,470 $180,990 $174,244 $146,162 $152,297 $156,097 $161,769 $154,130 Quarters Ended Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date 2007 2007 2007 2007 To-Date Servicing and securitization revenue as a percentage of average off-balance sheet student loans (annualized) 1.11 % 0.02 % 0.70 % 0.96 % 0.70 % 2.29 % 1.23 % 0.28 % 0.23 % 1.03 % -6-
  • 12. SLM CORPORATION Student Loan Acquisitions (Dollars in millions) (Unaudited) Quarters Ended Year-to-date Mar. 31, Jun. 30, Sep. 30, Dec. 31, 2008 2008 2008 2008 FFELP Private Total Preferred Channel $7,960 $4,478 $8,338 $5,555 $19,894 $6,437 $26,331 Other commitment clients 185 259 193 64 701 - 701 Spot purchases 22 133 42 9 206 - 206 Consolidations from third parties 541 66 3 1 462 149 611 Consolidations and clean-up calls of off-balance sheet securitized loans 277 88 602 299 986 280 1,266 Capitalized interest, premiums and discounts 706 807 805 1,049 2,446 921 3,367 Total on-balance sheet student loan acquisitions 9,691 5,831 9,983 6,977 24,695 7,787 32,482 Consolidations and clean-up calls of off-balance sheet securitized loans (277) (88) (602) (299) (986) (280) (1,266) Capitalized interest, premiums and discounts -off-balance sheet securitized trusts 255 318 251 374 457 741 1,198 Total Managed student loan acquisitions $9,669 $6,061 $9,632 $7,052 $24,166 $8,248 $32,414 Quarters Ended Year-to-date Mar. 31, Jun. 30, Sep. 30, Dec. 31, 2007 2007 2007 2007 FFELP Private Total Preferred Channel $6,975 $5,680 $7,841 $4,969 $17,577 $7,888 $25,465 Wholesale Consolidations 3,076 - 911 - 950 - 2,111 - 7,048 -- 7,048 Other commitment clients 52 146 82 25 248 57 305 Spot purchases 746 259 30 85 1,120 - 1,120 Consolidations from third parties 702 485 821 433 2,206 235 2,441 Consolidations and clean-up calls of off-balance sheet 1,346 1,700 936 344 3,744 582 4,326 securitized loans Capitalized interest, premiums and discounts 690 617 612 804 2,279 444 2,723 Total on-balance sheet student loan acquisitions 13,587 9,798 11,272 8,771 34,222 9,206 43,428 Consolidations and clean-up calls of off-balance sheet securitized loans (1,346) (1,700) (936) (344) (3,744) (582) (4,326) Capitalized interest, premiums and discounts -off-balance sheet securitized trusts 278 301 233 430 539 703 1,242 Total Managed student loan acquisitions $12,519 $8,399 $10,569 $8,857 $31,017 $9,327 $40,344 -7-
  • 13. SLM CORPORATION Managed Student Loan Activity (Dollars in millions) (Unaudited) Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2008 2008 2008 2008 To-Date Beginning balance $163,576 $169,475 $171,904 $177,690 $163,576 Net consolidations: Incremental consolidations from third parties 541 66 3 1 611 Consolidations to third parties (425) (211) (485) (466) (1,587) Total net consolidations 116 (145) (482) (465) (976) Acquisitions 9,128 5,995 9,629 7,051 31,803 Net acquisitions 9,244 5,850 9,147 6,586 30,827 Repayments/claims/resales/other (3,345) (3,421) (3,361) (3,883) (14,010) Ending balance $169,475 $171,904 $177,690 $180,393 $180,393 Total Managed Acquisitions (1) $9,669 $6,061 $9,632 $7,052 $32,414 Quarters Ended Mar. 31, Jun. 30, Sep. 30, Dec. 31, Year 2007 2007 2007 2007 To-Date Beginning balance $142,092 $149,961 $153,203 $159,759 $142,092 Net consolidations: Incremental consolidations from third parties 702 485 821 433 2,441 Consolidations to third parties (1,312) (1,213) (1,197) (709) (4,431) Total net consolidations (610) (728) (376) (276) (1,990) Acquisitions 11,817 7,914 9,748 8,424 37,903 Net acquisitions 11,207 7,186 9,372 8,148 35,913 Repayments/claims/resales/other (3,338) (3,944) (2,816) (4,331) (14,429) Ending balance $149,961 $153,203 $159,759 $163,576 $163,576 Total Managed Acquisitions (1) $12,519 $8,399 $10,569 $8,857 $40,344 (1) Includes incremental consolidations from third parties and acquisitions. -8-
  • 14. SLM CORPORATION Average Balance Sheets (Dollars in millions) (Unaudited) Quarters Ended Mar. 31, 2008 Jun. 30, 2008 Sep. 30, 2008 Dec. 31, 2008 Year-to-Date Amount Rate Amount Rate Amount Rate Amount Rate Amount Rate Average Assets FFELP Stafford and Other Student Loans $38,349 4.87 % $41,666 4.80 % $45,804 4.48 % $51,250 4.01 % $44,291 4.50 % FFELP Consolidation Loans 73,800 4.56 73,509 4.21 72,926 4.53 72,142 4.09 73,091 4.35 Private Education Loans 17,192 10.38 18,573 8.86 19,876 8.92 21,434 8.15 19,276 9.01 Other loans 1,194 7.78 1,018 8.43 859 9.21 752 9.61 955 8.66 Cash and investments 12,264 4.06 9,076 3.13 7,964 2.85 7,843 1.26 9,279 2.98 Total interest earning assets 142,799 5.33 % 143,842 4.94 % 147,429 5.04 % 153,421 4.51 % 146,892 4.95 % Non-interest earning assets 9,546 10,391 10,035 10,021 9,999 Total assets $152,345 $154,233 $157,464 $163,442 $156,891 Average Liabilities and Stockholders' Equity ED Participation Program facility $- 0.00 % $- 0.00 % $960 3.38 % $5,909 3.43 % $1,727 3.43 % Term bank deposits 460 4.63 683 4.11 703 3.83 937 3.60 696 3.95 Other short-term borrowings 35,515 4.77 34,811 4.86 32,387 5.00 31,865 4.60 33,636 4.81 Total short-term borrowings 35,975 4.77 35,494 4.85 34,050 4.93 38,711 4.40 36,059 4.73 Long-term borrowings 107,666 4.44 109,351 3.45 114,046 3.39 115,370 3.80 111,625 3.76 Total interest bearing liabilities 143,641 4.52 % 144,845 3.79 % 148,096 3.75 % 154,081 3.95 % 147,684 4.00 % Non-interest bearing liabilities 3,462 3,895 3,821 4,004 3,797 Stockholders' equity 5,242 5,493 5,547 5,357 5,410 Total liabilities and stockholders' equity $152,345 $154,233 $157,464 $163,442 $156,891 Net interest margin 0.78 % 1.13 % 1.28 % 0.55 % 0.93 % -9A-
  • 15. SLM CORPORATION Average Balance Sheets (Dollars in millions) (Unaudited) Quarters Ended Mar. 31, 2007 Jun. 30, 2007 Sep. 30, 2007 Dec. 31, 2007 Year-to-Date Amount Rate Amount Rate Amount Rate Amount Rate Amount Rate Average Assets FFELP Stafford and Other Student Loans $26,885 6.80 % $30,794 6.66 % $32,576 6.64 % $34,819 6.30 % $31,294 6.59 % FFELP Consolidation Loans 63,260 6.51 67,154 6.49 69,289 6.56 71,859 6.05 67,918 6.39 Private Education Loans 11,354 12.09 10,917 12.10 12,706 12.26 15,007 10.47 12,507 11.65 Other loans 1,365 8.31 1,259 8.43 1,192 8.65 1,171 8.62 1,246 8.49 Cash and investments 7,958 5.81 9,930 5.72 14,625 5.73 18,196 5.25 12,710 5.57 Total interest earning assets 110,822 7.12 % 120,054 7.00 % 130,388 7.06 % 141,052 6.50 % 125,675 6.90 % Non-interest earning assets 9,095 9,804 9,928 10,020 9,715 Total assets $119,917 $129,858 $140,316 $151,072 $135,390 Average Liabilities and Stockholders' Equity Term bank deposits $116 5.33 % $230 5.30 % $165 5.27 % $152 5.15 % $166 5.26 % Other short-term borrowings 3,104 5.91 4,985 6.82 20,887 6.06 35,493 5.40 16,219 5.75 Total short-term borrowings 3,220 5.89 5,215 6.75 21,052 6.06 35,645 5.40 16,385 5.74 Long-term borrowings 107,950 5.58 115,388 5.59 109,887 5.63 106,727 5.54 109,984 5.59 Total interest bearing liabilities 111,170 5.59 % 120,603 5.64 % 130,939 5.70 % 142,372 5.51 % 126,369 5.61 % Non-interest bearing liabilities 4,483 4,105 4,315 4,186 4,272 Stockholders' equity 4,264 5,150 5,062 4,514 4,749 Total liabilities and stockholders' equity $119,917 $129,858 $140,316 $151,072 $135,390 Net interest margin 1.51 % 1.33 % 1.34 % 0.94 % 1.26 % -9B-