SLM Corporation Announces Dividend Increase

RESTON, VA – SLM Corporation, commonly known as Sallie Mae and the nation’s No. 1 paying-for-college company, today announced a 2005 second-quarter dividend on its common stock of $0.22 per share, three cents more than was paid in the previous quarter. The dividend on the common stock will be paid on June 17, 2005 to shareholders of record at the close of business on June 3, 2005.

In addition, the company announced a 2005 third-quarter dividend on its Preferred Stock Series A of $0.87125 per share. The dividend on the Preferred Stock will be paid on Aug. 1, 2005 to shareholders of record at the close of business on July 22, 2005.

On March 31, 2005, SLM Corporation had 422.9 million shares of common stock and 3.3 million shares of Preferred Stock outstanding. Both stocks trade on the New York Stock Exchange.

SLM Corporation, commonly known as Sallie Mae, is the nation’s No. 1 paying-for-college company, managing nearly $112 billion in student loans for 8 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE). In 2004, the company terminated its GSE charter, ending its ties to the federal government. Sallie Mae remains the country’s largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, the company also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. More information is available at http://www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.