UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of
Report (Date of Earliest Event
Reported):
August
25, 2008
SLM
CORPORATION
(Exact
name of registrant as specified in its charter)
|
Delaware
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001-13251
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52-2013874
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|
(State
or other jurisdiction
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(Commission
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(I.R.S.
Employer
|
|
of
incorporation)
|
File
Number)
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Identification
No.)
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|
|
|
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12061
Bluemont Way, Reston, Virginia
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20190
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code:
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(703) 810-3000
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Not
Applicable
|
|
Former
name or former address, if changed since last
report
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any
of
the following provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
1.01 Entry into a Material Definitive Agreement.
Effective
as of August 25, 2008, SLM Corporation (the "Company"), through its special
purpose entity, Rendezvous Funding I, reduced the commitments under its Private
Education Loan ABCP conduit facility by approximately $2.2 billion. The
commitments provided by Bank of America, N.A., JPMorgan Chase Bank, N.A.,
Barclays Bank plc, Deutsche Bank AG, New York Branch, The Royal Bank of Scotland
plc, Credit Suisse, New York Branch and DZ Bank AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt am Main were reduced from approximately
$5.9 billion to approximately $3.8 billion. There were no changes to interest
rates, maturity or other terms of the facility.
The
Company, through its special purpose entities, Town Hall Funding I, Town Center
Funding I and Bluemont Funding I, also agreed to reduce the commitments under
its FFELP student loan ABCP conduit facilities by approximately $4.1 billion
on
or before September 30, 2008. After giving effect to these reductions, the
aggregate commitments under the FFELP student loan ABCP conduit facilities
provided by Bank of America, N.A., JPMorgan Chase Bank, N.A., Barclays Bank
plc,
Deutsche Bank AG, New York Branch, The Royal Bank of Scotland plc, Credit
Suisse, New York Branch, Royal Bank of Canada, Merrill Lynch Bank USA, Lloyds
TSB Bank plc, Natixis Financial Products Inc., BNP Paribas, New York Branch
and
DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main will be
approximately $21.9 billion. If this reduction is completed, as the Company
expects, on or before September 30, 2008, there will be no changes to interest
rates, maturity or other terms of the facilities.
As
a
result of the reduced commitments, the banks will rebate to the Company fees
previously paid to the Managing Agents of approximately $17.1 million. Rebated
fees will be amortized as a reduction of interest expense beginning on the
effective dates of the amendments to the maturity date of the facilities.
The
Company took these steps to reduce these commitments after an analysis of its
ongoing liquidity needs and following its acceptance and funding under the
Department of Education’s Loan Participation Purchase Program. For the academic
year 2008-2009, the Company expects to utilize the Participation Program to
fund
all eligible Stafford and PLUS loan originations.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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SLM CORPORATION |
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| August 28, 2008 |
By:
/s/ Michael
Sheehan
Name:
Michael Sheehan
Title:
Senior Vice President & General
Counsel
|