Sallie Mae 2006 Annual Report Download - page 28

The following table lists the principal facilities leased by the Company as of December 31, 2006:
Location Function
Approximate
Square Feet
Niles, IL ............. AFSHeadquarters 84,000
Summerlin, Nevada ..... Debt Management and Collections Center 71,000
Cincinnati, Ohio ....... GRCHeadquarters and Debt Management and Collections
Center
59,000
Muncie, IN ........... SLM— DMO 54,000
Needham, MA ........ Upromise 49,000
Mt. Laurel, New Jersey . . SLM Financial Headquarters and Operations 42,000
Novi, MI ............ Sallie Mae Home Loans 37,000
Seattle, WA .......... NELA 32,000
Moorestown, NJ ....... Pioneer Credit Recovery 30,000
Braintree, MA......... Nellie Mae Headquarters 27,000
Whitewater, WI ....... AFSOperations 16,000
Centennial, CO ........ Noel-Levitz 16,000
White Plains, NY ...... GRP 15,400
West Valley, NY ....... Pioneer Credit Recovery 14,000
Batavia, NY .......... Pioneer Credit Recovery 13,000
Iowa City, IA ......... Noel-Levitz 13,000
Perry, NY ............ Pioneer Credit Recovery 12,000
Gainesville, FL ........ SLMLSC 11,000
Phoenix, AZ .......... Sallie Mae Home Loans 9,000
Cincinnati, OH ........ Student Loan Funding 9,000
Burlington, MA ....... Sallie Mae Home Loans 8,000
Washington, D.C. ...... Government Relations 5,000
None of the Company’s facilities is encumbered by a mortgage. The Company believes that its
headquarters, loan servicing centers data center, back-up facility and data management and collections centers
are generally adequate to meet its long-term student loan and new business goals. The Company’s principal
office is currently in owned space at 12061 Bluemont Way, Reston, Virginia, 20190.
Item 3. Legal Proceedings
On January 25, 2007, the Attorney General of Illinois filed a lawsuit against one of the Company’s
subsidiaries, Arrow Financial Services, LLC (“AFS”), in the Circuit Court of Cook County, Illinois alleging
that AFS violated the Illinois Consumer Fraud and Deceptive Practices Act and the federal Fair Debt
Collections Practices Act. The lawsuit seeks to enjoin AFS from violating the Illinois Consumer Fraud and
Deceptive Practices Act and from engaging in debt management and collection services in or from the State of
Illinois. The lawsuit also seeks to rescind certain agreements to pay back debt between AFS and Illinois
consumers, to pay restitution to all consumers who have been harmed by AFS’s alleged unlawful practices, to
impose a statutory civil penalty of $50,000 and to impose a civil penalty of $50,000 per violation ($60,000 per
violation if the consumer is 65 years of age or older). The lawsuit alleges that as of January 25, 2007, 660
complaints against Arrow Financial have been filed with the Office of the Illinois Attorney General since 1999
and over 800 complaints have been filed with the Better Business Bureau. As of December 29, 2006, the
Company owns 88 percent of the membership interests in AFS Holdings, LLC, the parent company of AFS.
Management cannot predict the outcome of this lawsuit or its effect on the Company’s financial position or
results of operations.
On December 28, 2006, the Company received an informal request for information and documents from
New York’s Office of the Attorney General concerning schools’ use of preferred lender lists for either FFELP
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