SLM Corporation (Sallie Mae) Secures Industrial Bank Charter

SLM Corporation, commonly known as Sallie Mae, the nation’s leading provider of education funding, today announced that the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions have approved the company’s application for an industrial bank charter.

Beginning in January 2006, Sallie Mae Bank will fund and originate private education and federally guaranteed consolidation loans made by Sallie Mae to students and families nationwide. In addition, the industrial bank charter allows Sallie Mae to expand the products and services it can offer to students and families. The company’s private education loan products will also continue to be available through several of its strategic lending partners.

Although the bank’s services will be provided nationally, the operations will be conducted through a single branch in Salt Lake City. Mark B. Howard, president and CEO of Sallie Mae Bank and former CFO of Volkswagen Bank, will lead an initial staff of 11.

Sallie Mae Bank will not have a material impact on the company’s 2006 earnings.