N E W S	R E L E A S E
FOR IMMEDIATE RELEASE	Media Contacts:	Investor Contacts:
	Jim Boyle	Jeff Heinz
	703/810-5605	703/810-7751
	Martha Holler	Nam Vu
	703/810-5178	703/810-7723

SLM CORPORATION (NYSE: SLM) LOAN ORIGINATIONS JUMP 22 PERCENT
FROM YEAR AGO, DRIVING EARNINGS GROWTH

Portfolio of Managed Loans Now Exceeds $80 Billion Mark

RESTON, Va., April 17, 2003 — SLM Corporation, commonly known as Sallie Mae, today reported first-quarter 2003 earnings and performance results that include a 22-percent increase in preferred-channel loan originations from the year-ago quarter.

     Preferred-channel loan originations consist of those loans created by the company’s owned or affiliated brands. These loans form a key measure of Sallie Mae’s market share success and, as an indicator of future loan acquisition volume, drive the company’s earnings growth and increase its managed-loans portfolio. That portfolio now exceeds $80 billion.

     “We are fortunate to be operating in a growing market, but we are driven to outperform that market, and we are achieving our goal,” said Albert L. Lord, vice chairman and chief executive officer, Sallie Mae. “Our team continues to focus on service to our customers. It helps that our customers and our employees feel passionate about the product: higher education.”

     Sallie Mae reports financial results on a GAAP basis and presents certain non-GAAP or “core cash” performance measures. The company’s equity investors, credit rating agencies and debt capital providers request these “core cash” measures to monitor the company’s business performance.

     Sallie Mae reported first-quarter 2003 GAAP net income of $417 million, or $2.64 per diluted share, compared to $422 million, or $2.63 per diluted share, in the year-ago period. Included in these GAAP results are $306 million in pre-tax gains on student loan securitizations and a $114 million pre-tax, market-value gain in derivatives.

     “Core cash” net income for the quarter was $203 million, or $1.28 per diluted share, a 22-percent increase from the year-ago quarter. “Core cash” net interest income was $372 million for the quarter, a 12-percent increase from the year-ago quarter’s $334 million.

     “Core cash” other income, which consists primarily of fees earned from guarantor servicing and collection activity, was $147 million for the 2003 first quarter, up from $124 million for the prior quarter and up from $121 million for the year-ago quarter. “Core-cash” operating expenses were $173 million, up slightly from $171 million in the prior quarter, and $161 million in the year-ago quarter.

Sallie Mae          •          11600 Sallie Mae Drive         •         Reston, Va 20193         •          www.salliemae.com

SLM CORPORATION (NYSE: SLM) LOAN ORIGINATIONS JUMP 22 PERCENT FROM YEAR AGO, DRIVING EARNINGS GROWTH

Page 2

     Both a description of the “core cash” treatment and a full reconciliation to the GAAP income statement can be found at www.salliemae.com.

     Total equity for the company at March 31, 2003, was $2.2 billion, an increase of $290 million from a year ago. In addition, the company’s tangible capital increased to 1.81 percent of managed assets, as compared to 1.61 percent as of March 31, 2002.

     The company will host its regular earnings conference call today at noon. Sallie Mae executives will be on hand to discuss various highlights of the quarter and to answer questions related to the company’s performance. Individuals interested in participating should call the following number today, April 17, 2003, starting at 11:45 a.m. EDT: (877) 356-5689 (USA and Canada) or (706) 679-0623 (International). The conference call will be replayed continuously beginning Thursday, April 17, at 3:30 p.m. EDT and concluding at 11:59 p.m. EDT on Thursday, April 24. Please dial (800) 642-1687 (USA and Canada) or dial (706) 645-9291 (International) and use access code 9393614. In addition, there will be a live audio Web cast of the conference call, which may be accessed at www.salliemae.com. A replay will be available 30-45 minutes after the live broadcast.

***

Statements in this release referring to expectations as to future market share, the successful consummation of any business acquisitions and other future developments are forward-looking statements, which 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, changes in the 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, changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, and changes in the general interest rate environment. For more information, see the company’s filings with the Securities and Exchange Commission.

***

SLM Corporation (NYSE: SLM) is the nation’s leading provider of education funding, managing nearly $81 billion in student loans for more than seven 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. Celebrating its 30th anniversary this year, the company opened its doors in May 1973 as a government-sponsored enterprise (GSE) called the Student Loan Marketing Association, and began the privatization process in 1997. Since then, Sallie Mae’s parent company name has changed, most recently to SLM Corporation (effective May 17, 2002). Through its specialized subsidiaries and divisions, the company also provides an array of consumer credit loans, including those for lifelong learning and K-12 education, and business and technical outsourcing services for colleges and universities. More information is available at http://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.

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Sallie Mae          •          11600 Sallie Mae Drive         •         Reston, Va 20193         •          www.salliemae.com

SLM CORPORATION
Supplemental Earnings Disclosure
March 31, 2003
(Dollars in millions, except earnings per share)

				Quarters ended
	March 31,			December 31,			March 31,
	2003			2002			2002
Net income	$	417		$	306		$	422
“Core cash” net income *		203			147			170
Diluted earnings per share	$	2.64		$	1.93		$	2.63
“Core cash” diluted earnings per share		1.28			.92			1.05
Net interest margin		2.00	%		1.47	%		2.34	%
“Core cash” net interest margin		1.78			1.49			1.71
Return on assets		3.41	%		2.42	%		3.46	%
“Core cash” return on assets		.97			.69			.87
Student loan spread		2.26	%		2.16	%		2.58	%
“Core cash” student loan spread		1.93			1.91			1.87
Average on-balance sheet student loans	$	44,159		$	43,816		$	42,357
Average off-balance sheet student loans		35,228			33,733			30,391
Average managed student loans	$	79,387		$	77,549		$	72,748
Ending on-balance sheet student loans	$	43,281		$	42,339		$	40,962
Ending off-balance sheet student loans		37,438			35,785			32,494
Ending managed student loans	$	80,719		$	78,124		$	73,456

* “Core cash” net income includes securitizations as financings and excludes the amortization of acquired intangible assets, and non-recurring items such as floor income and gains and losses on certain sales of securities and derivative contracts. In addition, the effects of SFAS No. 133 are excluded from “core cash” net income and the economic hedge effects of derivative instruments are recognized.

SLM CORPORATION

Consolidated Statements of Income

(In thousands, except per share amounts)

				Quarters ended
	March 31,			December 31,			March 31,
	2003			2002			2002
Interest income:
Student loans	$	436,250		$	454,751		$	534,251
Academic facilities financings and other loans		20,206			25,964			26,316
Investments		28,261			(20,815	)		37,410
Total interest income		484,717			459,900			597,977
Interest expense		244,089			274,375			316,600
Net interest income		240,628			185,525			281,377
Less: provision for losses		42,545			34,066			20,237
Net interest income after provision for losses		198,083			151,459			261,140
Other income:
Gains on student loan securitizations		305,803			262,086			44,260
Servicing and securitization revenue		137,479			133,371			194,682
(Losses) on sales of securities, net		(81,560	)		(66,894	)		(89,107	)
Derivative market value adjustment		114,366			50,615			288,351
Guarantor servicing and debt management fees		99,805			81,841			78,372
Other		48,630			47,194			43,614
Total other income		624,523			508,213			560,172
Operating expenses		179,365			180,720			166,801
Income before income taxes		643,241			478,952			654,511
Income taxes		226,692			172,922			232,167
NET INCOME		416,549			306,030			422,344
Preferred stock dividends		2,875			2,876			2,875
Net income attributable to common stock	$	413,674		$	303,154		$	419,469
Basic earnings per share	$	2.72		$	1.98		$	2.70
Average common shares outstanding		152,194			152,777			155,629
Diluted earnings per share	$	2.64		$	1.93		$	2.63
Average common and common equivalent shares outstanding		156,565			157,074			159,683

SLM CORPORATION

Consolidated Balance Sheets

(In thousands, except per share amounts)

	March 31,		December 31,		March 31,
Assets	2003		2002		2002
Federally insured student loans (net of allowance for losses of $58,404, $49,751 and $57,334, respectively)	$	38,340,112	$	37,168,276	$	36,315,771
Private credit student loans (net of allowance for losses of $174,177, $180,933 and $206,184, respectively)		4,941,225		5,171,399		4,646,273
Academic facilities financings and other loans		1,139,617		1,202,045		1,905,669
Cash and investments		4,839,651		4,989,803		5,298,864
Retained interest in securitized receivables		2,481,318		2,145,523		1,739,060
Goodwill and acquired intangible assets		579,365		586,127		584,057
Other assets		2,012,488		1,911,832		1,954,741
Total assets	$	54,333,776	$	53,175,005	$	52,444,435
Liabilities
Short-term borrowings	$	23,825,598	$	25,618,955	$	30,745,072
Long-term notes		25,240,729		22,242,115		17,411,673
Other liabilities		3,023,193		3,315,985		2,333,604
Total liabilities		52,089,520		51,177,055		50,490,349
Commitments and contingencies*
Stockholders’ equity
Preferred stock, par value $.20 per share, 20,000 shares authorized: 3,300; 3,300; and 3,300 shares, respectively, issued at stated value of $50 per share		165,000		165,000		165,000
Common stock, par value $.20 per share, 375,000 shares authorized: 210,094; 208,184; and 204,357 shares, respectively, issued		42,019		41,637		40,871
Additional paid-in capital		1,316,511		1,185,847		904,946
Accumulated other comprehensive income, net of tax		596,693		592,760		560,148
Retained earnings		3,094,050		2,718,226		2,456,711
Stockholders’ equity before treasury stock		5,214,273		4,703,470		4,127,676
Common stock held in treasury at cost: 58,560; 55,604; and 49,022 shares, respectively		2,970,017		2,705,520		2,173,590
Total stockholders’ equity		2,244,256		1,997,950		1,954,086
Total liabilities and stockholders’ equity	$	54,333,776	$	53,175,005	$	52,444,435

*     Commitments to purchase loans, lines of credit, letters of credit, and academic facilities financing letters of credit were $33.0 billion, $0.4 billion, $2.8 billion, and $45.5 million, respectively, at March 31, 2003.

SLM CORPORATION
Pro-Forma “Core Cash”
Consolidated Statements of Income

Sallie Mae reports “core cash” earnings, which the Company believes provides additional insights into its business. The differences between GAAP and “core cash” earnings calculations are explained below.

1)	Securitization: Under GAAP, transactions are presented as a sale of assets. “Core cash” earnings present securitization as long-term non-recourse financings. The upfront “gains” on sale from securitization as well as ongoing “servicing and securitization revenue” presented by GAAP are excluded from “core cash” earnings and replaced by the interest income and expense as they are earned or incurred on the securitized loans.
2)	Floor income: The Company earns floor income on its student loan portfolio in certain declining interest rate environments. The timing and amount (if any) of floor income are uncertain and in excess of expected spreads, and therefore the Company excludes such income from “core cash” earnings.
3)	SFAS No. 133: The Company employs certain hedging transactions to match the interest rate characteristics of its managed assets and liabilities. These transactions (generally called derivatives) are financially prudent and create effective economic hedges, but they do not qualify for “hedge treatment” under GAAP’s SFAS No. 133 and therefore, the derivative side of the match must be marked-to-market. The corresponding asset or liability is ignored under SFAS No. 133. “Core cash” earnings exclude the periodic write-ups and write-downs caused by the one-sided valuations, and the economic hedge effects are recognized.
4)	Other items: “Core cash” earnings exclude the amortization of acquired intangibles, as well as gains and losses on certain sales of securities and derivative contracts.

(In thousands, except per share amounts)

		Quarters ended
		March 31,		December 31,			March 31,
		2003		2002			2002
		(Unaudited)		(Unaudited)			(Unaudited)
Interest income:
	Managed student loans	$	742,343	$	774,348		$	805,049
	Academic facilities financings and other loans		20,206		25,964			26,316
	Investments		29,243		(20,730	)		38,680
Total managed interest income			791,792		779,582			870,045
Managed interest expense			419,342		463,050			536,454
Net managed interest income			372,450		316,532			333,591
Less: provision for losses			31,606		34,066			26,849
Net managed interest income after provision for losses			340,844		282,466			306,742
Other income:
	Guarantor servicing and debt management fees		99,805		81,841			78,372
	Other		47,407		41,883			42,816
Total other income			147,212		123,724			121,188
Operating expenses			172,737		171,302			161,187
Income before income taxes			315,319		234,888			266,743
Income taxes			112,029		88,179			96,385
“CORE CASH” NET INCOME			203,290		146,709			170,358
Preferred stock dividends			2,875		2,876			2,875
“Core cash” net income attributable to common stock		$	200,415	$	143,833		$	167,483
“Core cash” basic earnings per share		$	1.32	$	.94		$	1.08
Average common shares outstanding			152,194		152,777			155,629
“Core cash” diluted earnings per share		$	1.28	$	.92		$	1.05
Average common and common equivalent shares outstanding			156,565		157,074			159,683

SLM CORPORATION
Pro-Forma “Core Cash”
Reconciliation of GAAP Net Income to “Core Cash” Net Income

(In thousands)

		Quarters ended
		March 31,			December 31,			March 31,
		2003			2002			2002
		(Unaudited)			(Unaudited)			(Unaudited)
GAAP net income		$	416,549		$	306,030		$	422,344
“Core cash” adjustments:
	Net interest income on securitized loans		167,065			140,093			208,136
	Floor income on managed loans		(73,095	)		(49,585	)		(182,106	)
	Provision for losses on securitized loans		10,939			–			(6,612	)
	Gains on student loan securitizations		(305,803	)		(262,086	)		(44,260	)
	Servicing and securitization revenue		(137,479	)		(133,371	)		(194,682	)
	Losses on sales of securities, net		72,291			995			86,695
	Amortization of acquired intangibles		6,772			9,567			5,786
	Net impact of derivative accounting		(67,392	)		55,444			(259,488	)
	Other		(1,220	)		(5,121	)		(1,237	)
Total “core cash” adjustments			(327,922	)		(244,064	)		(387,768	)
Net tax effect (A)			114,663			84,743			135,782
“Core cash” net income		$	203,290		$	146,709		$	170,358

(A)  Such tax effect is based upon the Company’s marginal tax rate for the respective period.