Sallie Mae Renews 'Best-Rate' Promise to Borrowers Considering Federal Loan Consolidation

March 23

Policy Allows Borrowers to Lock in Best Rate

   RESTON, Va., March 23 /PRNewswire/ -- Sallie Mae, the nation's leading
provider of education funding, today announced that it will once again offer a
"best-rate" promise to borrowers applying for federal consolidation loans.
Applications received between now and June 30 will be held until the new
interest rate for federal education loans goes into effect on July 1, and
borrowers who consolidate with Sallie Mae will be guaranteed the lowest rates
possible (pre-July 1 versus post-July 1 rates).  Sallie Mae will, however,
accommodate any borrower request to consolidate education loans before July 1.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a )
    Student-loan consolidation involves paying off the borrower's current
federal education loans in full and creating a new loan with a new interest
rate and repayment term.  Federal Stafford and PLUS loans charge variable
rates that are set by formulas based on the last auction of 91-day U.S.
Treasury bills in May.  Federal Consolidation loans, however, carry fixed
rates that are based on the rates of the loans being consolidated.  Current
Stafford rates are as low as 3.42 percent for loans in repayment and 2.82
percent for loans in grace or deferment.  Should those rates fall effective
July 1, Sallie Mae's "best-rate" policy ensures that borrowers interested in
consolidating their student loans can lock in at the lowest rates available to
them in 2004.
    "We know it is difficult for consumers to choose the right moment to bet
on interest rates," said Patricia Scherschel, loan consolidation executive for
Sallie Mae's SMART LOAN(R) program. "This removes the stress of wondering
whether the new rates in July will be higher or lower.  Either way, our
customers will win."
    In addition to Sallie Mae's best-rate guarantee, student and parent
borrowers who consolidate their Stafford, PLUS and other eligible federal
education loans under Sallie Mae's SMART LOAN Consolidation Account can reduce
their consolidation interest rate by an additional 1.25 percentage points by
making on-time payments and submitting their payments via Sallie Mae's
automatic debit service.
    For more information about Sallie Mae's application-hold service, borrower
benefits, and concierge application services, individuals can speak with
Sallie Mae's loan consolidation specialists by calling 800/448-3533, Monday
through Thursday, 8 a.m. to 8 p.m. EST, Friday and Saturday 8 a.m. to 5 p.m.
EST.  Borrowers can apply online at http://www.smartloan.com.  The site also offers
application assistance, a payment calculator and answers to frequently asked
questions.

    SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation's
leading provider of education funding, managing nearly $89 billion in student
loans for more than 7 million borrowers.  The company primarily provides
federally guaranteed student loans originated under the Federal Family
Education Loan Program (FFELP), and offers comprehensive information and
resources to guide students, parents and guidance professionals through the
financial aid process. Sallie Mae was established in 1973 as a government-
sponsored enterprise (GSE) called the Student Loan Marketing Association, and
began the privatization process in 1997.  Since then, the parent company name
has changed, most recently to SLM Corporation.  Through its specialized
subsidiaries and divisions, Sallie Mae also provides an array of consumer
credit loans, including those for lifelong learning and K-12 education, and
business and technical products and services for colleges and universities.
More information is available at http://www.salliemae.com.  SLM Corporation
and its subsidiaries, other than the Student Loan Marketing Association, are
not sponsored by or agencies of the United States.