Sallie Mae Extends Deadline for Notes Tendered and Announces Early Results of Its Cash Tender Offers

RESTON, Va.--(EON: Enhanced Online News)--Sallie Mae (NYSE: SLM) today announced that it has elected to extend the deadline, which was previously set at 5:00 p.m. New York City Time on March 15, 2011 (the “Early Tender Deadline”), for which Holders of Any and All Securities are eligible to receive the applicable total consideration, which includes $30.00 per $1,000 principal amount of securities accepted for purchase (the “Any and All Total Consideration”). Holders of Any and All Securities who validly tender their securities after the Early Tender Deadline but on or prior to 11:59 p.m. New York City Time on March 29, 2011 are now entitled to receive the Any and All Total Consideration.

Sallie Mae today also announced that it has elected to extend the deadline, which was previously set at the Early Tender Deadline, for which Holders of Dutch Auction Securities are eligible to receive the applicable total consideration, which includes $30.00 per $1,000 principal amount of securities accepted for purchase (the “Dutch Auction Total Consideration”). Holders of Dutch Auction Securities who validly tender their securities after the Early Tender Deadline but on or prior to 11:59 p.m. New York City Time on March 29, 2011 are now eligible to receive the Dutch Auction Total Consideration.

Holders who validly tendered and did not withdraw their securities on or prior to the Early Tender Deadline, and whose securities are accepted for purchase in the Any and All Offer, will be entitled to receive the Any and All Total Consideration, which includes $30.00 per $1,000 principal amount of securities accepted for purchase, on the Early Tender Settlement Date, expected to be March 17, 2011.

As of 5:00 p.m. New York City Time on March 15, 2011, Sallie Mae received tenders of securities subject to the Any and All Offer totaling $155,656,000 and tenders of securities subject to the Dutch Auction Offer totaling $584,338,000.

The results are set out in the table below:

Title of Security	CUSIP Number	Outstanding Principal Amount	Principal Amount Tendered by the Early Tender Deadline	Total Consideration  (Bid Range)(1)(2)
Any and All Offer
Floating Rate Medium Term Notes, Series A Due January 1, 2014	78442FBM9	$75,000,000	$21,978,000	$997.50
Floating Rate Medium Term Notes, Series A Due February 1, 2014	78442FBP2	$53,212,000	$17,605,000	$995.00
Floating Rate Medium Term Notes, Series A Due April 1, 2014	78442FCB2	$52,524,000	$21,697,000	$977.50
Floating Rate Medium Term Notes, Series A Due May 1, 2014	78442FCF3	$35,000,000	$8,592,000	$975.00
Floating Rate Medium Term Notes, Series A Due July 1, 2014	78442FCS5	$50,000,000	$16,587,000	$972.50
Floating Rate Medium Term Notes, Series A Due August 11, 2014	78442FCV8	$25,000,000	$9,239,000	$982.50
Floating Rate Medium Term Notes, Series A Due September 15, 2014	78442FCW6	$21,386,000	$6,956,000	$950.00
Floating Rate Medium Term Notes, Series A Due October 1, 2014	78442FCY2	$100,430,000	$27,337,000	$955.00
Floating Rate Medium Term Notes, Series A Due December 15, 2014	78442FDB1	$37,960,000	$25,665,000	$965.00
Dutch Auction Offer
Floating Rate Medium Term Notes, Series A Due 2014	78442FEF1	$796,393,000	$162,415,000	$935.00 - $955.00
5.375% Medium Term Notes, Series A Due 2014	78442FCJ5	$919,930,000	$340,243,000	$1,032.50 - $1,052.50
5.05% Medium Term Notes, Series A Due 2014	78442FAE8	$493,682,000	$81,680,000	$1,010.00 - $1,030.00

(1) Per $1,000 principal amount of securities accepted for purchase.
(2) Includes the Early Tender Payment.

As set forth in the Offer to Purchase, withdrawal rights for both the Any and All Offer and the Dutch Auction Offer expired at 5:00 p.m. New York City Time on March 15, 2011. Securities tendered pursuant to the tender offers may no longer be withdrawn.

Sallie Mae has retained BofA Merrill Lynch and Barclays Capital to serve as the Dealer Managers for the tender offers. Sallie Mae has also retained D.F. King & Co., Inc. to serve as the Depositary and Information Agent. Copies of the Offer to Purchase and Letter of Transmittal can be obtained by contacting the Information Agent at [phone]. Questions regarding the tender offers should be directed to BofA Merrill Lynch at [phone] (toll free) or [phone] (collect) and Barclays Capital at [phone] (toll-free) or [phone] (collect). You may also contact your broker, dealer, commercial bank or trust company or other nominee for assistance concerning the offers.

This press release is not a tender offer to purchase or a solicitation of acceptance of a tender offer, which may be made only pursuant to the terms of the Offer to Purchase and the Letter of Transmittal. In any jurisdiction where the laws require the tender offers to be made by a licensed broker or dealer, the tender offers will be deemed made on behalf of Sallie Mae by BofA Merrill Lynch and Barclays Capital or one or more registered brokers or dealers under the laws of such jurisdiction. The tender offers are not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction.

Sallie Mae (NYSE: SLM) is the nation’s No. 1 financial services company specializing in education. Serving 23 million customers, Sallie Mae offers innovative savings tools, tuition payment plans and education loans that promote responsible financial habits and reward success. The company manages or services $235 billion in education loans and administers $35 billion in 529 college savings plans. Members of its Upromise college savings rewards program have earned $600 million to help pay for college. Sallie Mae is also one of the leading financial service providers for universities and governments at all levels. More information is available at www.SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.