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Sallie Mae Helps 2 Million Customers Avoid Student Loan Default

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					Sallie Mae Helps 2 Million Customers Avoid
Student Loan Default
Another 422,000 Customers Succeed by Paying Student Loans in Full

July 14, 2010 11:24 AM Eastern Daylight Time  

RESTON, Va.--(EON: Enhanced Online News)--During the last 12 months, Sallie Mae helped more than 2 million
customers resolve their past-due accounts and avoid default on $38 billion in federal and private student loans. In
addition, Sallie Mae celebrated 422,000 customers as they successfully paid their student loans in full over the past
year.

Sallie Mae’s college planning tools, continuous communication with customers, and loan default prevention programs
are critical elements toward helping customers preserve their good credit and access lower-cost credit in the future,
taxpayers save dollars on federally guaranteed student loans, and colleges retain their eligibility for federal financial
aid for students.

Lee Ann and Joshua R. of Pocahontas, Ark., are examples of how Sallie Mae helps customers successfully manage
their student loans. As the young couple had their first child and established a career in business, there were several
occasions when they fell behind on Joshua’s student loan payments. A Sallie Mae default prevention specialist
reached out, providing information and counseling on payment options that helped them stay current. Last year, they
paid the remaining balance on Joshua’s student loans. The experience taught them serious life lessons about money
management—lessons they will carry with them when they eventually take over the reins of the family’s third-
generation furniture business. “We are nearly debt free now,” Lee Ann says. “And nothing could feel better.” 

For 24-year-old Lauren J., student loans served as an invaluable stepping stone in helping her get one step closer to
a career in the culinary arts. After graduating from Luzerne County Community College in Nanticoke, Pa., Lauren’s
dream was temporarily deferred courtesy of a tough job market and a depressed local economy. Lauren was
contacted by Sallie Mae, and offered a temporary repayment solution to help with her financial issues and steer her
back on a successful repayment track. She has since paid off her student loans in full. Lauren’s advice for others
who may find themselves facing repayment difficulties with their student loans is simple: “If you keep in contact with
the people you owe and show them that you’re making a concerted effort to live up to your responsibilities, it’s more
likely they will take the time to understand your situation and work with you to develop a plan,” she says.

Sallie Mae’s default prevention efforts begin before loans are even made through the tools the company offers to
help families borrow responsibly and build a plan to pay for college. During college and after graduation, the
company also provides students with financial literacy communications and information on payment options.

The severe and lasting impacts of loan default may include damage to the customer’s credit, job prospects, denial or
loss of professional licenses, the possibility of civil litigation, and the possibility of being denied other forms of
consumer credit for years to come. On federally guaranteed student loans, the Department of Education also takes
remedies to recover funds through wage garnishment, the seizure of income tax refunds and federal benefit payments,
or the loss of eligibility for additional federal student aid. That is why Sallie Mae continues to assist federal student
loan customers even if they default to help get their account back in good standing. This extra effort helps 14 percent
of defaulted federal student loan customers reestablish a clean credit report.

“By far, the best way to avoid default is to stay in regular contact with your lender. Sallie Mae has a multitude of
resources and options to help our customers successfully manage their loans,” said Brianna Fears, a default
prevention specialist at Sallie Mae. “We understand that the tough economy and other unforeseen circumstances can
make it difficult for some of our customers and we’re prepared to help.” 

Sallie Mae also offers its customers options to pay off early whenever possible by making interest payments while in
school and offering programs such as Upromise that enable families to earn extra money to apply toward student
loans. Vanessa H. of Long Beach, Calif., is one such customer. An alumna of University of Southern California and
CSU Long Beach, now a training manager at a public accounting firm, she paid extra on her student loan whenever
she could, joined Upromise, and put off buying a new car. “I saved myself thousands of dollars in interest, over six
years in payments, and earned an incredible sense of achievement that I was able to set a goal and see it to the
finish,” she said.

SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation’s leading saving, planning and
paying for education company. Sallie Mae’s saving programs, planning resources and financing options have helped
more than 31 million people make the investment in higher education. Through its subsidiaries, the company manages
$182 billion in education loans and serves 10 million student and parent customers. In addition, the company’s
Upromise program has enabled 12 million members to earn more than $525 million in rewards to help pay for
college. Its Upromise affiliates also manage more than $25 billion in 529 college-savings plans. Sallie Mae offers
services to a range of institutional clients, including colleges and universities, student loan guarantors and state and
federal agencies. More information is available at www.SallieMae.com. SLM Corporation and its subsidiaries are
not sponsored by or agencies of the United States of America.

Contacts
Sallie Mae
Patricia Nash Christel, 703-984-5382
patricia.christel@salliemae.com

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Description: RESTON, Va.--(EON: Enhanced Online News)--During the last 12 months, Sallie Mae helped more than 2 million customers resolve their past-due accounts and avoid default on $38 billion in federal and private student loans. In addition, Sallie Mae celebrated 422,000 customers as they successfully paid their student loans in full over the past year. Sallie Mae’s college planning tools, continuous communication with customers, and loan default prevention programs are critical elements toward helping c a style='font-size: 10px
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