Sallie Mae 2007 Annual Report Download - page 2

FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This report contains forward-looking statements and information that are based on management’s current
expectations as of the date of this document. Statements that are not historical facts, including statements
about our beliefs or expectations and statements that assume or are dependent upon future events are forward-
looking statements, and are contained throughout this Annual Report on Form 10-K, including under the
sections entitled “Business” and “Management’s Discussion and Analysis of Financial Condition and Results
of Operations.” 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, the occurrence of any event, change or other circumstances
that could give rise to our ability to cost-effectively refinance the aggregate interim $30 billion asset-backed
commercial paper conduit facilities (collectively, the “Interim ABCP Facility”) extended to SLM Corporation,
more commonly known as Sallie Mae, and its subsidiaries (collectively, “the Company”) by Bank of America,
N.A. and JPMorgan Chase, N.A. in connection with the Merger Agreement (defined in the Glossary below),
including any potential foreclosure on the student loans under those facilities following their termination,
increased financing costs and more limited liquidity; any adverse outcomes in any significant litigation to
which we are a party; our derivative counterparties may terminate their positions with the Company if its
credit ratings fall to certain levels and the Company could incur substantial additional costs to replace any
terminated positions; 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,
among other things, may reduce the volume, average term and 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 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; 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; changes in projections of losses from loan defaults; changes in general
economic conditions; 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. All
forward-looking statements contained in this report are qualified by these cautionary statements and are made
only as of the date this Annual Report on Form 10-K is filed. The Company does not undertake any obligation
to update or revise these forward-looking statements to conform the statement to actual results or changes in
the Company’s expectations.
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