The Student Loan Corporation Announces Third Quarter Loss of $26.98 Per Share

The Student Loan Corporation STU today reported net loss of $539.6 million, or $26.98 per share, for the quarter ended September 30, 2010, compared to net income of $54.8 million, or $2.74 per share, reported for the same quarter of 2009. The Company's current quarter net loss reflects an after-tax impairment charge of $562.2 million on certain loans which the Company expects to sell to SLM Corporation (Sallie Mae) and Citibank, N.A. pursuant to the Asset Purchase Agreements entered into on September 17, 2010. Excluding the impact of the impairment charge, the Company would have recognized net income of $22.6 million, a $32.2 million decrease compared to the same quarter of last year. This decrease reflects higher funding costs and a higher provision for loan losses, which more than offset the positive impact of the consolidation of the Company's previously unconsolidated securitization trusts and gains on loan sales.