Sallie Mae Smart Option Student Loan Terms and Conditions.

We want families to have all the information they need to make an informed

decision. That’s why we’ve included the fine print below.

You must attend an eligible school and be enrolled in an eligible program. U.S. citizens enrolled in eligible study abroad programs

or studying at medical schools outside the United States are also eligible. International students are eligible with a creditworthy

cosigner (who must be a U.S. citizen or permanent resident) and appropriate U.S. Citizenship and Immigration Service

documentation.

You must meet current credit and other eligibility criteria

degree-granting institutions range from LIBOR + 2.500% to LIBOR + 10.875% (2.87% APR to 10.48% APR) (LIBOR of

0.375% as of 5/25/2010) with no origination fees. Rates for borrowers attending non-degree granting institutions range

from LIBOR + 7.75% to LIBOR + 12.5% (8.13% APR to13.88% APR) (LIBOR of 0.375% as of 5/25/2010) and the

origination fee ranges from 0% to 5%. The APR and interest rate on your loan will be variable rates and will changed

based on changes in the one-month LIBOR rate. Your interest rate and monthly payment may increase if the one-month

LIBOR rate increases.

more information.

applications initiated on or after June 28, 2010, and is subject to change. The following typical loan example uses

approximated numbers, is for informational purposes only and is an example of loan terms available through the Smart

Option Student Loan: A Smart Option Student Loan made to a freshman borrower at a degree granting institution of

$10,000 with two disbursements and a 10.05% APR [Interest rate of LIBOR + 10.375% (LIBOR of 0. 375% as of

5/25/2010) and no origination fee or disbursement fee]. APR may increase after consummation. Repayment consists of

51 fixed $25/month payments (in-school period of 45 months plus separation period of 6 months), followed by 119

principal and interest payments of $179.79 per month and one payment of $115.65.

reward will not be available for any subsequent in-school period. Primary borrower must be of the age of majority in his or

her state of residence (typically 18 years old) and must indicate current Upromise membership or enroll in Upromise at the

time of loan application. To be eligible to receive the 2% reward, the borrower may not have had two consecutive

scheduled payments past due on the loan for which the benefit is available. If the borrower has two consecutive

scheduled payments past due, he or she will no longer be eligible for the reward on that loan. If all conditions are met,

primary borrower will earn 2% of the scheduled payment amount in Upromise rewards into his or her Upromise account

for each on time payment. The 2% reward is not earned on payment amounts in excess of the scheduled payment.

Benefit is subject to the terms and conditions of the Upromise service (as may be amended from time-to-time), including

without limitation, restrictions on conversion, transfer and redemption of rewards, reward denomination, including whether

and under what circumstances the rewards have independent cash value, and terms relating to fees and/or the forfeiture

of rewards. Benefit available on eligible loans first disbursed on or after June 1, 2010.

successfully deducted from the designated bank account. Benefit is suspended during periods of forbearance and certain

deferments.

principal and interest payments, meet age of majority requirements, be a U.S. citizen or permanent resident and meet the

underwriting requirements when the release request is processed. Account must remain current until the request for

cosigner release is processed.

other financial aid received. Sallie Mae reserves the right to approve a lower loan amount than what the school has

certified.

June 14, 2010.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES AND BENEFITS AT ANY TIME WITHOUT