Student Loan ABS Sector

Moderated by:

Linda Stesney,Managing Director

Moderated by:

Linda Stesney,Managing Director

American Securitization Forum

January 30, 2006

2

Our Panelists

Sharon Asch—Director ABN AMRO Inc.

John Hupalo—Executive Vice President Group Head, First Marblehead Corp.

Leo Subler—Managing Director—Sallie Mae

Amy Vespasiano, Director—Lloyds TSB Bank

Linda Stesney—Managing Director, Moody’s Investors Service

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Our Goals

Summarize 2005 Issuance and 2006 Outlook

Review Impact of Deficit Reduction Act of 2005 on Student Loan ABS

Perspective on Private SLABS

Credit and Cash Flow Analysis on Private SLABS

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2005 Highlights

Record Issuance--$73.3 Billion

FFELP Consolidation Loans Dominated--$38 Billion

Private Loan Securitized Volume--$9.4 Billion

Deficit Reduction Act of 2005

5

Student Loan ABS Issuance

-10,00020,00030,00040,00050,00060,00070,00080,000

1998 1999 2000 2001 2002 2003 2004 2005

$ in

mill

ion

s

For-Profit Non-Profit/State Agency Total Volume

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2005 Private Loan Volumes

Private Loan Origination Volume by Academic Year($ in Billions)

$0

$5

$10

$15

1995-96 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Source: CollegeBoard

7

Consolidation Loan Volume

Consollidation Loan Volume

$0

$10,000

$20,000

$30,000

$40,000

$50,000

1998 1999 2000 2001 2002 2003 2004

$ in

mill

ions

Direct FFELP Total

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Deficit Reduction Act of 2005—Key Proposals

Reduce government guarantee

– (from 98% to 97%; from 100% for Exceptional

Performers to 99%)

Stafford and Plus Loans go fixed rate (6.8% and 8.5%, respectively)—SAP continues to float

“Floor Income” rebated back to government

– =excess of borrower rate over quarterly SAP

9

Deficit Reduction Act of 2005—Key Proposals (cont’d)

Eliminates in-school consolidation and virtually eliminates two-step consolidations

PLUS loans available to grad and professional students

Loan limits increased on Staffords

Recycling of 9.5% loans virtually eliminated

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Know Your Audience

Q1: Which category best describes you role in student loan ABS?

– Investor

– Intermediary

– Issuer

– Other

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Know Your Audience (cont’d)

Q2 Describe your exposure to student loans—

– I am considering investing in student loans and want

to learn more about the product

– I already invest in student loans but want to deepen

my understanding of:

• A. FFELP Loans

• B. Private Loans

--Student loans make up a significant portion of my

portfolio

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Q3 Audience Follow-Up

In 2006 do you expect to allocate more investment dollars to Student Loan ABS?

– I will increase holdings in FFELP ASB

– I will increase holdings in private loan ABS

– I expect to decrease holdings in FFELP ABS

– I expect to decrease holdings in private loan ABS

– I expect to maintain the same allocation