Southwest student loan corporation

GILBERT, Ariz., March 16 /PRNewswire/ -- Southwest Student Services Corporation (Southwest), a nationally recognized higher education lender and loan servicer headquartered in Gilbert, Ariz., today announced that it will continue to provide the lowest-cost education loans to Arizona students by offering money-saving origination and repayment benefits.

For academic year 2005-2006, Southwest will continue to offer its Absolute Zero Loan, which waives the 3-percent origination fee on all Federal Stafford Loans that are taken out by students who reside in or attend a college or university in Arizona. The 3-percent origination fee, which goes to the U.S. Department of Education, typically is assessed at the time loan proceeds are distributed to the student's higher education institution and deducted from the student's loan amount. Through this program, Southwest will pay the fee on the student's behalf. Zero origination fees apply to unsubsidized and subsidized, graduate and undergraduate Stafford Loans.

In addition to this zero-origination-fee benefit, Arizona students also continue to be eligible to receive an interest-rate discount of up to 1.25 percentage points on their Stafford Loans when they enter repayment.

"Southwest is proud to be the lowest-cost education-loan provider in the state of Arizona -- helping more families manage the cost of college," said Vince Roig, chief executive officer of Southwest. "Our longstanding commitment to increasing access to higher education in Arizona is illustrated as we continue to provide benefits that save students hundreds -- even thousands of dollars -- year in and year out."

Southwest's zero-origination-fee benefit has been so well received by Arizona schools and students that it is now being offered by Southwest's lender partners, including Academic Management Services (AMS), Nellie Mae, Sallie Mae Education Trust and Student Loan Funding.

For more information about the zero origination fee and borrower benefit programs, schools should contact their Southwest account representative.

About Southwest Student Services Corporation

Southwest Student Services Corporation serves schools and borrowers at every education level that seek financial aid counseling, student loan funding, loan origination, loan consolidation and life-of-the-loan servicing. The company is among the top 30 originators of federal student loans, issuing more than $1.8 billion in student loans annually, and it is the nation's ninth largest holder of federal student loans with a portfolio of more than $5 billion.

Southwest is known nationally for providing innovative, money-saving benefits and exceeding customer expectations. In 23 years of service, Southwest has helped more than 1 million people reach their educational goals.

Southwest Student Services Corporation is a wholly owned subsidiary of SLM Corporation, commonly known as Sallie Mae. SLM Corporation is the nation's leading provider of education funding, managing more than $107 billion in student loans for more than 7 million borrowers. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

For additional information about Southwest Student Services Corporation, visit http://www.sssc.com/ or contact Kathleen Harris, Vice President at 480- 461-6511 or E-mail KHarris@sssc.com.

CONTACT: Kathleen C. Harris, Vice President of Southwest Student Services Corporation, +1-480-461-6511, or KHarris@sssc.com

Web site: http://www.sssc.com/