Sallie Mae 2003 Annual Report Download

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We Stand Behind Our Customers
SLM CORPORATION SUMMARY ANNUAL REPORT 2003

Table of contents

  • Page 1
    We Stand Behind Our Customers S L M C O R P O R AT I O N S U M M A RY A N N UA L R E P O RT 2 0 0 3

  • Page 2
    ... millions of Americans access the dream of a college education? For the answer, we turned to both our customers and our own Sallie Mae employees. In the pages that follow, they describe how Sallie Mae stands behind its customers, providing the tools and support to serve students and families across...

  • Page 3
    ...2003, Sallie Mae's employees served our customers - schools, borrowers, lenders and guarantors - more effectively and efficiently, thereby helping more students pursue a college education. Our employees are truly the Sallie Mae story. It is why we chose to highlight them in this year's annual report...

  • Page 4
    Letter from the CEO & President Dear Fellow Shareholders: Whether you are a longtime owner or a recent investor, we thank you for your trust and confidence in Sallie Mae and its management team. You own a business with a 30-year record of performance, and an outlook that we see as even brighter ...

  • Page 5
    ... and focused education to working and "transitioning" adults. We have worked closely with this segment of the market, which is fueling both our FFELP and private credit loan originations. Today, our nearly 8,000 employees deliver service to schools and students. Our 300-person sales force connects...

  • Page 6
    ... are proponents and holders of long-term stock options as is every employee of Sallie Mae. These options in aggregate reward us with about a 10 percent share of Sallie Mae's value creation. ALBERT L. LORD VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOMAS J. FITZPATRICK PRESIDENT AND CHIEF OPERATING...

  • Page 7
    ...) Education First Marketing, LLC (Chase) CAREER TRAINING, CONSUMER FINANCE TrueCareers.com SUCCESS by Sallie Mae SLM Financial Corporation DEBT MANAGEMENT Noel-Levitz Student Assistance Corporation General Revenue Corporation Pioneer Credit Recovery, Inc. SERVICE SUPPORT: Nearly 8,000 employees...

  • Page 8
    ... Weible ACCOUNT EXECUTIVE FOR THE NORTHEAST "Our number one goal is to help school customers," explains Adrienne Weible of Sallie Mae's higher education sales team. "When we get clients the answer they need, they are able to focus on the important work at hand: helping students and families with...

  • Page 9
    ... From sales to servicing, we are constantly looking for ways to tap the power of technology to make the loan process easier for students, families and schools. Daniel Pinch ASSOCIATE VICE PRESIDENT OF STUDENT ADMINISTRATIVE SERVICES AT EMERSON COLLEGE Sallie Mae's commitment to higher education is...

  • Page 10
    ... Located in our Texas, Florida, Indiana and Arizona centers, CollegeServ provides "on-the-spot" service and support to schools throughout the country. Says Janice Morse, a CollegeServ representative in Killeen, Texas: "Accountability and responsiveness to a school's needs and the needs of students...

  • Page 11
    ... Mae. Here, 200 representatives with extensive knowledge of the student loan process provide school customers across the country with the information and support they need to manage the delivery of education loans to a financial aid office. Catherine Thomas DIRECTOR OF FINANCIAL AID UNIVERSITY...

  • Page 12
    Sudip Patnaik MANAGING DIRECTOR OF LOAN DELIVERY PRODUCTS As of March 1, 2004, Sallie Mae had launched OpenNetSM at 367 schools, with nearly $750 million in student loans successfully guaranteed. At Louisiana State University, OpenNet went "live" March 1, 2004. Spearheading the implementation of ...

  • Page 13
    ... Sudip Patnaik, it's all in a day's work. Last fall, Sudip delivered a presentation to financial aid officials at Louisiana State University (LSU). The subject: OpenNet, Sallie Mae's Web-based platform for exchanging student loan file data with any lender, guarantor or servicer. For LSU, the idea of...

  • Page 14
    ... PRESIDENT OF USA FUNDS SERVICES Guarantor servicing represents one of Sallie Mae's first entries into fee-based business, and continues to serve as a key growth driver for the company. With the support of USA Funds Services, USA Funds' new loan guarantee volume (not including consolidation loans...

  • Page 15
    ... program for middle-school students called USA Funds Unlock the Future. "We view the role of a guarantor not solely as an administrator of student loans but as a catalyst for college access that works in partnership with educational institutions, state and federal governments, financial-service...

  • Page 16
    Joan Ludwick CEO, PIONEER CREDIT RECOVERY Industry collection efforts have lowered the cost of student loan defaults in the Federal Family Education Loan Program (FFELP) by $1 billion since 1991. Contributing to that performance is Pioneer Credit Recovery and its CEO, Joan Ludwick. 14

  • Page 17
    ... LOAN ORIGINATION LOAN DELIVERY GUARANTOR SERVICES DEBT MANAGEMENT In 1997, Joan Ludwick started work as an analyst at Pioneer Credit Recovery, Inc. The company had 30 employees. Six years later, the once-fledgling business has grown to 750 employees, and is considered a national leader in federal...

  • Page 18
    ..., except per share amounts) ASSETS 2003 2002 Federally insured student loans (net of allowance for losses of $23,787 and $36,325, respectively) Federally insured student loans in trust (net of allowance for losses of $19,710) Private credit student loans (net of allowance for losses of $168...

  • Page 19
    ... interest income Interest expense Net interest income Less: provision for losses Net interest income after provision for losses Other income: Gains on student loan securitizations Servicing and securitization revenue Derivative market value adjustment Guarantor servicing fees Debt management fees...

  • Page 20
    ... thousands) 2003 (UNAUDITED) 2002 (UNAUDITED) 2001 (UNAUDITED) Managed interest income: Managed federally insured student loans Managed private credit student loans Academic facilities financings and other loans Investments Total managed interest income Managed interest expense Net managed interest...

  • Page 21
    ...'s Form 10-K to the Securities and Exchange Commission. (Dollars in millions, except per share amounts) OPERATING DATA: 2003 2002 2001 2000 1999 Net interest income Net income Basic earnings per common share, before cumulative effect of accounting change Basic earnings per common share, after...

  • Page 22
    ...Mountain West University of Montana †Presidential appointees Sallie Mae Executive Management Albert L. Lord Vice Chairman & CEO Thomas J. Fitzpatrick President & COO C.E. Andrews Executive Vice President, Accounting & Risk Management Marianne M. Keler Executive Vice President & General Counsel...

  • Page 23
    ... Mae Headquarters 11600 Sallie Mae Drive Reston, VA 20193 www.salliemae.com Investor Relations Steve McGarry Managing Director 703-810-7746 By facsimile: 703-810-5074 Corporate Secretary Mary F. Eure Vice President 703-810-7785 By facsimile: 703-810-6005 Stock Transfer Agent The Bank of New York...

  • Page 24
    SLM Corporation 11600 Sallie Mae Drive Reston, Virginia 20193 www.salliemae.com