C dit S i Fi i l S i FCredit Suisse Financial Services ForumFebruary 4, 2009

Forward-Looking Statements

This Presentation contains forward-looking statements and information based on management’s current expectations as of the date of thispresentation. Statements that are not historical facts, including statements about our beliefs or expectations and statements that assume orare dependent upon future events, are forward-looking statements. Forward-looking statements are subject to risks, uncertainties,assumptions and other factors that may cause actual results to be materially different from those reflected in such forward-looking statements.These factors include, among others, the occurrence of any event, change or other circumstances that could give rise to our ability to cost-effectively refinance asset backed financing facilities due February 2009 (collectively the “2008 Asset Backed Financing Facilities”) includingeffectively refinance asset-backed financing facilities due February 2009, (collectively, the 2008 Asset-Backed Financing Facilities ), includingany potential foreclosure on the student loans under those facilities following their termination; increased financing costs; limited liquidity; anyadverse outcomes in any significant litigation to which we are a party; our derivative counterparties terminating their positions with theCompany if permitted by their contracts and the Company substantially incurring additional costs to replace any terminated positions; changesin the terms of student loans and the educational credit marketplace (including changes resulting from new laws and regulations and from theimplementation of applicable laws and regulations) which, among other things, may change the volume, average term and yields on studentp pp g ) , g g , y g , g yloans under the Federal Family Education Loan Program (“FFELP”), may result in loans being originated or refinanced under non-FFELPprograms, or may affect the terms upon which banks and others agree to sell FFELP loans to the Company. The Company could also beaffected by: various liquidity programs being implemented by the federal government, changes in the demand for educational financing or infinancing preferences of lenders, educational institutions, students and their families; incorrect estimates or assumptions by management inconnection with the preparation of our consolidated financial statements; changes in the composition of our Managed FFELP and PrivateEducation Loan portfolios; changes in the general interest rate environment, including the rate relationships among relevant money marketinstruments, and in the securitization markets for education loans, which may increase the costs or limit the availability of financings necessaryto initiate, purchase or carry education loans; changes in projections of losses from loan defaults; changes in general economic conditions;changes in prepayment rates and credit spreads; and changes in the demand for debt management services and new laws or changes inexisting laws that govern debt management services. All forward-looking statements contained in the Presentation are qualified by thesecautionary statements and are made only as of the date of this Presentation The Company does not undertake any obligation to update orcautionary statements and are made only as of the date of this Presentation. The Company does not undertake any obligation to update orrevise these forward-looking statements to conform the statement to actual results or changes in the Company’s expectations.

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Sallie Mae Proposition

• Strong business fundamentals

• Competitive, scale franchise

• FFELP profitability assured through 2010

• Liquidity improving and adequate to meet debt service

• ED facility provides unlimited funding for new FFELP originations through AY 09/10

• Expanding deposit funding – provides funding for new Private Credit Originations

• Asset class performs well despite weakening consumer credit

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FFELP Originations

$20

$24

$12

$16

in b

illio

ns)

$0

$4

$8($

$0

Sallie Mae Lender Partners

• FFELP originations increased 25% in the 4th quarter

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FFELP Funding

• $7.4 billion funded through the ED Purchase and Participation Program at CP + 50 basis points

• Participation and Purchase Programs extended for the AY 09/10

• ED Conduit Program (Straight A Funding) is expected to begin in February

• Th F d l R t t l di d TALF i• The Federal Reserve expects to commence lending under TALF in February

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Private Education Loan Originations

• Originated $6.3 billion in 2008

• Average FICO score in Q4 ‘08 increased from prior year by 26 points to 738

• 74% of new loan originations had co-borrowers, up from 57% in prior year

• Product pricing reflects current funding environment

• Raised $1.6 billion in Q408 in term bank deposits with a weighted average maturity of 2.2 years

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Recession Has Smaller Impact On College Grads

7.0

8.0

9.0

4 0

5.0

6.0

7.0

2.0

3.0

4.0

0.0

1.0

Total Unemployment RateUnemployment Rate with a Bachelor's Degree or Higher

7Source: U.S. Department of Labor, Bureau of Labor Statistics

SLM Private Credit Default Emergence Profile – Payments Made

3.0%

Loss Emergence TimingSallie Mae Signature Loans

1 5%

2.0%

2.5%

Loan

Bal

ance

0.5%

1.0%

1.5%

rcen

t of O

rigin

al L

0.0%0-12 13-24 25-36 37-48 49-60 61-72 73-84 85-96 97-108 109-120 121-132 133-144 145-156

Per

Payments Made

Defaults (% of Original Loan Balance)Defaults (% of Original Loan Balance)

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Portfolio Quality IncreasingNon Cosigned Repayment Waves

$400

$600

$800

$1,000

Non-Traditional Repayment Waves($ in millions)

$2,000

$3,000

$4,000

Non-Cosigned Repayment Waves($ in millions)

$0

$200

$400

2004 2005 2006 2007 2008 2009 2010 2011 2012

Non Traditional $

$0

$1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Non-cosigned $

N T diti l t h ff t i 6 t th T diti l

Amounts shown above show dollar amount of loans that will enter repayment

Non-Traditional $ Non cosigned $

• Non-Traditional net charge-off rate is 6x greater than Traditional

• 74% of new loan originations had co-borrowers, up from 57% in prior year, g , p p y ,objective is 90% cosigned loans

• Non cosigned loans charge off at more than twice the rate of cosigned loans• Non cosigned loans charge off at more than twice the rate of cosigned loans

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Net Charge offs $ N t Ch ff R t % f A R B l

Default Trends – Mix of Traditional vs. Non-Traditional

500

600

700

800

s

Net Charge-offs $

15%

20%

25%Net Charge-off Rate as a % of Avg Repay Balance

100

200

300

400

Mill

ions

5%

10%

15%

-2006 2007 2008 2009F

Trad Non-Trad

0%2006 2007 2008 2009F

Trad Non-Trad

• Net charge-offs driven by Non-Traditional loans

• Non-Traditional loans represents 14% of the Private Education Loan portfolio

• Higher Quality loans entering repayment in 2009 and 2010Higher Quality loans entering repayment in 2009 and 2010

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Changes to Forbearance Policy

• Small segment (18%) of loans that are in forbearance account for majority (58%) of defaults

• Of the remaining 82% of borrowers who received forbearance only 6% have defaulted

• Reducing forbearance to certain borrowers will accelerate $225 million of charge offs into 2009charge offs into 2009

• Forbearance is an effective and beneficial tool for both borrower and l dlender

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Liquidity Position Update

• ED Purchase and Participation Program used for all new FFELPoriginations

• Bank Deposits used for all new Private Education Loan originations

• ED Conduit (Straight A Funding) used for Term Financing for Short Term Prime FFELP Loans

• TALF used for Term Financing for Short Term Prime FFELP Loans, Consolidation & Private Education Loans

• $30 Billion of existing loans that meet criteria for ED Conduit and/or TALF

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Funding Sources

$180 Billion Managed Student Loan Portfolio

Term Funded*,

70%

Fixed Spread Liabilities

with Averagewith Average Life of 4.3 years, 12%

ABCP Conduit, 18%

• Employ conservative long-term funding model

13* Term Funded includes 4% or $7.6 Billion of advances outstanding under the ED Purchase and Participation Program

Unsecured Debt Maturities

A f D b 31 2008

15.0

As of December 31, 2008(par value, $ in billions)

7.1 7.1

11.7

10.0

2.9

1.12.2

0.5

2.3 3.0

0 0

5.0

0.0

• On 01/22/09 S&P affirmed our senior unsecured debt rating of BBB-

14Note: Does not include SLM Bank or Subsidiary funding

2009 Outlook

OriginationsOriginations

• $5 - $6 billion in Private Education Loans

• $21 - $23 billion in FFELP Loans

Credit Quality

• Private Education Loan Provision of approximately $1 billion

• Total Provision of approximately $1.2 billion

• Private Education Loan Charge-offs of $1.3 billion with $225 million related to changes in forbearance policy

Earnings

• Earnings per share between $1 45 and $1 65Earnings per share between $1.45 and $1.65

• Assumes $250 million in revenue from government put in 3rd quarter

• Assumes CP/LIBOR spread to average 10 basis points

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Summary

• Strong business fundamentals

• Competitive scale franchiseCompetitive, scale franchise

• FFELP profitability assured through 2010

• Emerging programs strengthen liquidity and improve profitability

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GAAP to “Core Earnings” EPS Reconciliation

($ in thousands, except per share amounts) Years EndedDecember 31, 2008 December 31, 2007

Dollars Diluted EPS Dollars Diluted EPSGAAP net income (loss) (212,626)$ (0.69)$ (896,394)$ (2.26)$ Adjustment from GAAP to "Core Earnings"Net impact of securitization accounting 442,190 (246,817) Net impact of securitization accounting 442,190 (246,817)

Net impact of derivative accounting 560,381 1,340,792 Net impact of Floor Income 102,056 168,501 Net impact of acquired intangibles 91,384 112,397 Total "Core Earnings" Adjustments before income taxesand minority interest in net earnings ofsubsidiaries 1,196,011 1,374,873subsidiaries 1,196,011 1,374,873 Net tax effect (457,435) 81,845 Total "Core Earnings" Adjustments 738,576 1,456,718 "Core Earnings" net income 525,950 0.89 560,324 1.23

"Core Earning" net income adjusted for non-recurring itemsMerger-related financing fees - 27 463Merger related financing fees 27,463 Merger-related professional fees and other costs - 35,456 Restructuring Expenses 52,778 14,178 Other reorganization-related asset impairments 4,136 - Impact to FFELP provision for loan losses due to legislative changes - 27,726 Deceleration of premium amortization expense on loans (74,138) - Acceleration of premium amortization expense on loans 51 777 -Acceleration of premium amortization expense on loans 51,777 Total after tax non-recurring items 34,553 0.07 104,823 0.24

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