Sallie Mae 2006 Annual Report Download - page 2
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This report contains forward-looking statements and information that are based on management’s current
expectations as of the date of this document. When used in this report, the words “anticipate,” “believe,”
“estimate,” “intend” and “expect” and similar expressions are intended to identify forward-looking statements.
These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may
cause the actual results to be materially different from those reflected in such forward-looking statements.
These 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 these
laws and regulations, which may reduce the volume, average term and costs of yields on student loans under
the Federal Family Education Loan Program (“FFELP”) or result in loans being originated or refinanced under
non-FFELP programs or may affect the terms upon which banks and others agree to sell FFELP loans to SLM
Corporation, more commonly known as Sallie Mae, and its subsidiaries (collectively, “the Company”). In
addition, a larger than expected increase in third party consolidations of our FFELP loans could materially
adversely affect our results of operations. The Company could also be affected by changes in the demand for
educational financing or in financing preferences of lenders, educational institutions, students and their
families; incorrect estimates or assumptions by management in connection with the preparation of our
consolidated financial statements; changes in the composition of our Managed FFELP and Private Education
Loan portfolios; a significant decrease in our common stock price, which may result in counterparties
terminating equity forward positions with us, which, in turn, could have a materially dilutive effect on our
common stock; changes in the general interest rate environment and in the securitization markets for education
loans, which may increase the costs or limit the availability of financings necessary to initiate, purchase or
carry education loans; losses from loan defaults; changes in prepayment rates and credit spreads; and changes
in the demand for debt management services and new laws or changes in existing laws that govern debt
management services.
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