PRICING SUPPLEMENT NO. 1 DATED SEPTEMBER 17, 2002 FILED UNDER RULE 424(b)(3)
(TO PROSPECTUS DATED SEPTEMBER 13, 2002 FILE NO.333-90316
AND PROSPECTUS SUPPLEMENT DATED SEPTEMBER 13, 2002)
SLM CORPORATION
Medium Term Notes, Series A
Due 9 Months or Longer From the Date of Issue
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Principal Amount: $350,000,000 Floating Rate Notes: |_| Fixed Rate Notes: |X|
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Original Issue Date Closing Date: September 20, 2002 CUSIP Number: 90390M AP5
of these Notes: April 10, 2002
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Option to Extend |X| No Specified Currency: U.S. Dollars
Maturity Date: April 10, 2007 Maturity:
|_| Yes
If Yes, Final Maturity
Date:
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Redeemable at the option of the Company: |X| No Redemption Price: Not Applicable.
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|_| Yes Redemption Dates: Not Applicable.
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Repayment at the option of the Holder: : |X| No Repayment Price: Not Applicable.
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|_| Yes Repayment Dates: Not Applicable.
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APPLICABLE TO FIXED RATE NOTES ONLY:
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Interest Rate: 5.625% Interest Payment Dates: Each April 10th and October 10th
during the term of the Notes, beginning
October 10, 2002, subject to following
business day convention.
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Interest Accrual Method: 30/360 Interest Periods: From and including the Original Issue
Date, or the previous April 10th or
October 10th, as the case may be, to and
including the next succeeding October 9th
or April 9th, as the case may be, with
no adjustment to period end dates for
accrual purposes.
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The Medium Term Notes, Series A that we are offering by this pricing supplement
are a further issuance of, are fungible with and are consolidated to form a
single series with our 5.625% Fixed Rate Medium Term Notes, Series A due April
10, 2007 issued on April 10, 2002. The 5.625% Fixed Rate Medium Term Notes,
Series A being offered by this pricing supplement will have the same CUSIP
number and will trade interchangeably with the previously issued 5.625% Fixed
Rate Medium Term Notes, Series A due April 10, 2007 immediately upon settlement.
Currently, $850,000,000 aggregate principal amount of those notes are
outstanding. This issuance will increase the aggregate principal amount of the
outstanding 5.625% Fixed Rate Medium Term Notes, Series A due April 10, 2007 to
$1,200,000,000.
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Joint Book-Running Managers
BANC OF AMERICA SECURITIES LLC CREDIT SUISSE FIRST BOSTON
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Co-Managers
ABN AMRO INCORPORATED
BANC ONE CAPITAL MARKETS, INC.
BARCLAYS CAPITAL INC.
JPMORGAN
MERRILL LYNCH & CO.
SALOMON SMITH BARNEY
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September 17, 2002
Form: Book-entry.
Denominations: $1,000 minimum and integral multiples of $1,000 in excess thereof.
CUSIP: 90390M AP5
ISIN: US90390M AP59
Listing: None.
Trustee: JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank.
Agents: The following agents are acting as underwriters in connection with this issuance:
Agents Principal Amount of Notes
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Banc of America Securities LLC $140,002,000
Credit Suisse First Boston Corporation 140,002,000
ABN AMRO Incorporated 11,666,000
Banc One Capital Markets, Inc. 11,666,000
Barclays Capital Inc. 11,666,000
J.P. Morgan Securities Inc. 11,666,000
Merrill Lynch, Pierce, Fenner & Smith Incorporated 11,666,000
Salomon Smith Barney Inc. 11,666,000
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Total $350,000,000
Issue Price: 110.609% (which includes accrued interest).
Agents' Commission: 0.350%.
Net Proceeds: $385,906,500.
Concession: 0.200%.
Reallowance: 0.150%.
OBLIGATIONS OF SLM CORPORATION AND ANY SUBSIDIARY OF SLM CORPORATION ARE NOT
GUARANTEED BY THE FULL FAITH AND CREDIT OF THE UNITED STATES OF AMERICA.
NEITHER SLM CORPORATION NOR ANY SUBSIDIARY OF SLM CORPORATION (OTHER
THAN STUDENT LOAN MARKETING ASSOCIATION) IS A GOVERNMENT-SPONSORED
ENTERPRISE OR AN INSTRUMENTALITY OF THE UNITED STATES OF AMERICA.