SLM Corporation Announces Redemption of Series A Preferred Stock

NEWARK, Del.–(BUSINESS WIRE)–Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today announced a
call for redemption of the outstanding 3,300,000 shares of its 6.97
percent Cumulative Redeemable Preferred Stock, Series A (the “Series A
Preferred Stock”). The Series A Preferred Stock will receive its next
quarterly dividend payment on May 1, 2017, and be redeemed on May 5,
2017, at a price of $50.00 per share, plus accrued and unpaid dividends
from May 1, 2017, to, but excluding, the May 5, 2017, redemption date.

The notice of redemption and related materials were delivered today to
the registered holders of record of the Series A Preferred Stock.
Questions relating to and requests for additional copies of the notice
of redemption and related materials should be directed to the redemption
and paying agent:

Computershare Trust Company, N.A.
c/o Computershare Inc., Corporate
Actions
250 Royall Street, Canton, MA 02021
Attention:
Reorganization Department
1-855-396-2084

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of these securities in any state or other jurisdiction in which
such an offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.

Sallie Mae (Nasdaq: SLM) is the nation’s saving, planning, and
paying for college company. Whether college is a long way off or just
around the corner, Sallie Mae offers products that promote responsible
personal finance, including private education loans, Upromise rewards,
scholarship search, college financial planning tools, and online retail
banking. Commonly known as Sallie Mae, SLM Corporation and its
subsidiaries are not sponsored by or agencies of the United States of
America.

This press release contains “forward-looking statements” and
information based on management’s current expectations as of the date of
this release. Statements that are not historical facts, including
statements about the company’s beliefs, opinions, or expectations and
statements that assume or are dependent upon future events, are
forward-looking statements. Forward-looking statements are subject to
risks, uncertainties, assumptions, and other factors that may cause
actual results to be materially different from those reflected in such
forward-looking statements. These factors include, among others, the
risks and uncertainties set forth in Item 1A “Risk Factors” and
elsewhere in the company’s Annual Report on Form 10-K for the year ended
Dec. 31, 2016 (filed with the SEC on Feb. 24, 2017), and subsequent
filings with the SEC; increases in financing costs; limits on liquidity;
increases in costs associated with compliance with laws and regulations;
failure to comply with consumer protection, banking and other laws;
changes in accounting standards and the impact of related changes in
significant accounting estimates; any adverse outcomes in any
significant litigation to which the company is a party; credit risk
associated with the company’s exposure to third parties, including
counterparties to the company’s derivative transactions; and changes in
the terms of education loans and the educational credit marketplace
(including changes resulting from new laws and the implementation of
existing laws). The company could also be affected by, among other
things: changes in its funding costs and availability; reductions to its
credit ratings; failures or breaches of its operating systems or
infrastructure, including those of third-party vendors; damage to its
reputation; risks associated with restructuring initiatives, including
failures to successfully implement cost-cutting and restructuring
initiatives and the adverse effects of such initiatives on the company’s
business; changes in the demand for educational financing or in
financing preferences of lenders, educational institutions, students and
their families; changes in law and regulations with respect to the
student lending business and financial institutions generally; changes
in banking rules and regulations, including increased capital
requirements; increased competition from banks and other consumer
lenders; the creditworthiness of its customers; changes in the general
interest rate environment, including the rate relationships among
relevant money-market instruments and those of its earning assets versus
its funding arrangements; rates of prepayments on the loans made by the
company and its subsidiaries; changes in general economic conditions and
the company’s ability to successfully effectuate any acquisitions; and
other strategic initiatives. The preparation of the company’s
consolidated financial statements also requires management to make
certain estimates and assumptions, including estimates and assumptions
about future events. These estimates or assumptions may prove to be
incorrect. All forward-looking statements contained in this release are
qualified by these cautionary statements and are made only as of the
date of this release. The company does not undertake any obligation to
update or revise these forward-looking statements to conform such
statements to actual results or changes in its expectations.

Contacts

Sallie Mae
Media:
Rick Castellano, 302-451-2541
rick.castellano@salliemae.com
or
Investors:
Brian
Cronin, 302-451-0304
brian.cronin@salliemae.com