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Sallie Mae Commends Rep. Jenkins and Rep. Kind on New Bipartisan Legislation to Help Americans Save for College

Albert L. Lord, vice chairman and CEO, Sallie Mae, said: "Sallie Mae commends Rep. Jenkins and Rep. Kind for their leadership in encouraging more Americans to save for college. Sallie Mae is committed to educating parents of all income levels on how they can save responsibly for this important life investment and to providing the tools to get started. This legislation would make it easier for low- and middle-income families to save for education, especially by expanding existing tax incentives for college savings and encouraging employer-matching programs. We look forward to working with Congress to pass legislation this year that expands college savings and helps more Americans prepare for the careers of tomorrow."

Sallie Mae's national study of parents of children ages 18 and under, conducted with Gallup, found that only 24 percent of parents use 529 plans to save for college. Although each state offers 529 college savings plans with low fees and federal tax incentives benefitting all income levels, half of those not currently using one say that they are not at all familiar with 529 plans.

The study also found that an employer-matching program, a key focus of Rep. Jenkins' and Rep. Kind's legislation, would be a top motivator for families to use a dedicated college savings plan. In fact, 60 percent of low- and middle- income families reported that an employer-matching program could motivate them to use a 529 or other dedicated college savings vehicles.

Sallie Mae's subsidiary, Upromise Investments, is the largest administrator of college savings plans, managing $35 billion in 529 assets on behalf of 16 states. Its 529 Works program is one of the only programs in the country that can enable companies to offer employees an automatic payroll deduction to encourage saving for college. More information about 529 plans is available at www.529.com.

Sallie Mae (NYSE: SLM) is the nation's No. 1 financial services company specializing in education. Serving 23 million customers, Sallie Mae offers innovative savings tools, tuition payment plans and education loans that promote responsible financial habits and reward success. The company manages or services $235 billion in education loans and administers $35 billion in 529 college savings plans. Members of its Upromise college savings rewards program have earned $600 million to help pay for college. Sallie Mae is also one of the leading financial service providers for universities and governments at all levels. More information is available at www.SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Sallie Mae
Patricia Nash Christel, 703-984-5382
patricia.christel@salliemae.com
or
Debby Hohler, 617-454-6741
dhohler@upromise.com