Sallie Mae 2009 Annual Report Download - page 2

FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This report contains forward-looking statements and information based on management’s current expecta-
tions 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. Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that
may cause actual results to be materially different from those reflected in such forward-looking statements.
These factors include, among others, increases in financing costs; limits on liquidity; any adverse outcomes in
any significant litigation to which we are a party; our derivative counterparties terminating their positions with
the Company if permitted by their contracts and the Company substantially incurring additional costs to
replace any terminated positions; and changes in the terms of student loans and the educational credit
marketplace (including changes resulting from new laws, such as any laws enacted to implement the Obama
Administration’s current budget proposals as they relate to the Federal Family Education Loan Program
(“FFELP”) and from the implementation of applicable laws and regulations) which, among other things, may
change the volume, average term and yields on student loans under the FFELP, may 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. The Company could be affected by: changes in or the termination
of various liquidity programs implemented by the federal government; changes in the demand for educational
financing or in financing preferences of lenders, educational institutions, students and their families; changes
in the composition of our Managed FFELP and Private Education Loan portfolios; changes in the general
interest rate environment, including the rate relationships among relevant money-market instruments, and in
the securitization markets, 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; changes in the demand for debt
management services; and new laws or changes in existing laws. The preparation of our consolidated financial
statements also requires management to make certain estimates and assumptions including estimates and
assumptions about future events. These estimates or assumptions may prove to be incorrect. All forward-
looking statements contained in this report are qualified by these cautionary statements and are made only as
of the date of this document. 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.
Definitions for capitalized terms used in this document can be found in the “Glossary” at the end of this
document.
1