Sallie Mae Unveils New Private Consolidation Loan

Newest Debt Management Tool Offers Convenience and Lower Monthly Payments

Rates Begin as Low as Prime Rate

Apr 24, 2006, 01:00 ET from Sallie Mae

    RESTON, Va., April 24 /PRNewswire/ -- Sallie Mae, the nation's leading
 provider of education funding, today introduced a new Private Consolidation
 Loan, which allows holders of private education loans -- either from Sallie
 Mae or another lender -- to manage repayment by combining their eligible
 loans into a new loan with a single monthly payment, a potentially lower
 monthly payment amount and an extended repayment term. The addition of the
 Private Consolidation Loan product brings another debt management tool to
 Sallie Mae's portfolio of repayment options. The company is the nation's
 largest consolidator of federal education loans, with more than $19 billion
 consolidated in the last federal fiscal year.
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     "We are committed to providing comprehensive repayment and debt
 management solutions to our customers who want to simplify the repayment
 process and make loan payments more manageable," said Paul Garrard,
 director of private credit consolidation, Sallie Mae. "We are pleased to
 provide our customers with another option that may help them better manage
 the investment in their education. Our user-friendly Web site and dedicated
 Call Center staff provide customers a great way to determine if private
 loan consolidation is right for them."
     Private education loans are credit-based education loans that provide
 financing to students who need funds beyond the federal loan program.
 Private education loans are an important and growing choice for millions of
 undergraduate, graduate and health profession students, as the amount
 students can currently borrow under the federal student loan program is
 often not enough to cover the gap between financial aid awarded and the
 actual cost of college.
     With Sallie Mae's Private Consolidation Loan, customers may extend
 their repayment term to up to 30 years, depending on the loan amount.
 Interest rates on Sallie Mae's Private Consolidation Loan are variable,
 based on the customer's credit history. Customers with very little or no
 credit history are eligible to apply with a creditworthy cosigner. Sallie
 Mae's Private Consolidation Loan offers interest rates as low as Prime Rate
 plus 0 percent. More information and application information is available
 online at or toll-free at
     Under current law, federal consolidation loans carry a fixed interest
 rate equal to the weighted average of the rates of the loans consolidated,
 adjusted upward to the nearest 0.125 percent. With interest rates on the
 underlying, variable-rate, federal student loans at or near 40-year lows,
 millions of federal student loan customers have benefited by consolidating
 their loans and fixing the low rate for the loan's life. Experts predict
 that interest rates on existing, variable-rate federal student loans will
 rise as much as 2 percentage points when they reset this July 1. Federal
 student loan customers who apply for consolidation before July 1 can
 potentially lock in an interest rate as low as 4.75 percent for the
 duration of the loan's term and qualify for rate reductions during
 repayment. More information on federal loan consolidation is available at, or toll-free at 800/448-3533.
     SLM Corporation (NYSE:   SLM), commonly known as Sallie Mae, is the
 nation's leading provider of education funding, managing nearly $127
 billion in student loans for 9 million borrowers. Sallie Mae was originally
 created in 1972 as a government-sponsored entity (GSE) and terminated its
 ties to the federal government in 2004. The company remains the country's
 largest originator of federally insured student loans. Through its
 specialized subsidiaries and divisions, Sallie Mae 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 SLM Corporation
 and its subsidiaries are not sponsored by or agencies of the United States
 of America.

SOURCE Sallie Mae