Sallie Mae to Sell Servicing Business for Collection Compliance

RESTON, VA – SLM Corporation, commonly know as Sallie Mae and the nation’s leading provider of education funding, today announced that it has signed a definitive agreement to sell its campus-based loan servicing business. Under the terms of the agreement, JPT Partners, LLC, will acquire the loan servicing operation that is based in Winston-Salem, N.C., and employs more than 120 individuals. The operation services primarily Perkins and other institution-based loans.

Sallie Mae took ownership of the business in November 2003 as part of the acquisition of Academic Management Services Corporation (AMS), a student loan originator and tuition payment plan provider. The divestiture was undertaken to comply with federal regulations that prevent schools from contracting with a single entity for servicing and collection of Perkins loans. Sallie Mae’s General Revenue Corporation is the nation’s largest university-focused collection agency.

SLM Corporation, 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 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.