Sallie Mae Acquires Majority Interest in Arrow Financial Services

Transaction Marks Continued Expansion of Company's

Debt Management Operations

Sep 17, 2004, 01:00 ET from Sallie Mae

    RESTON, Va., Sept. 17 /PRNewswire-FirstCall/ -- SLM Corporation
 (NYSE:   SLM), commonly known as Sallie Mae, today announced that it has
 acquired a majority interest in Arrow Financial Services, a full-service
 accounts receivable management company that purchases charged-off debt,
 conducts contingency collection work and performs third-party receivables
 servicing across a number of consumer asset classes.
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     "Arrow Financial brings a wealth of assets to our debt management
 organization, including experienced management and a highly successful
 modeling capability," said Thomas J. (Tim) Fitzpatrick, president and chief
 operating officer, Sallie Mae. "The acquisition extends our reach in the debt
 recovery industry and expands the services we can offer our customers."
     The purchase price was not disclosed.  The transaction is expected to be
 immediately accretive to 2004 earnings, and the company expects it to
 contribute between $.05 and $.07 per diluted share in 2005.  Under the terms
 of the agreement, Sallie Mae has the option to purchase the remaining interest
 in Arrow Financial Services over a three-year period.
     "We are proud and excited to be joining the Sallie Mae family," said Jack
 Lavin, president and chief executive officer, Arrow Financial.  "This
 relationship will open doors to new customers for our growing business."
     Arrow Financial employs nearly 1,400 individuals at locations in Niles,
 Ill., Gaithersburg, Md., San Diego, Calif., Whitewater, Wis., and Rockville
 Centre, N.Y.  The company was founded in 1961 and has been under the
 continuous ownership and management of the Lavin family.  It will retain its
 brand, successful strategy and senior management team.
     SLM Corporation (NYSE:   SLM), commonly known as Sallie Mae, is the nation's
 leading provider of education funding, managing nearly $95 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 SLM Corporation and
 its subsidiaries, other than the Student Loan Marketing Association, are not
 sponsored by or agencies of the United States.
     Arrow Financial Services has over 40 years of experience in the accounts
 receivable management business and has achieved industry leadership by
 pursuing a business strategy of diversification across business line, asset
 class and stage of delinquency.  Arrow also has developed a collection
 competency that combines industry-leading collection technology with a high-
 energy work environment. More information is available at
     Statements in this release referring to expectations as to future earnings
 and operations, and other future developments are forward-looking statements
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such forward-looking statements involve risks, uncertainties and other factors
 that may cause the actual results to differ materially from such forward-
 looking statements. Such factors include, among others, the ability to
 successfully integrate operations, the impact of competitors' responses,
 changes in terms of student loans and the educational credit marketplace
 arising from the implementation of applicable laws and regulations, and from
 changes in such laws and regulations, and changes in the demand for
 educational financing or in financing preferences of educational institutions,
 students and their families.

SOURCE Sallie Mae