The Student Loan Corporation Sharpens Strategic Focus on Lending Activities

Business Wire, April 16, 2008

STAMFORD, Conn. -- Citing dislocation in the capital markets and recent federal legislation, The Student Loan Corporation (SLC), a subsidiary of Citibank N.A. and a leading originator of student loans, announced today that, for the time being, it will suspend lending at certain schools and withdraw from the Federal Consolidation Loan market.

"These changes reflect the decisive action that is needed to manage our business through this difficult time in the overall economy," said Michael Reardon, Chairman, President and Chief Executive Officer of SLC. "We continue to be well-positioned as an industry leader that is committed to delivering sustainable, profitable growth."

Effective May 1, 2008, SLC will suspend lending at certain schools where loans with lower balances and shorter interest-earning periods result in unsatisfactory financial returns. Also effective May 1, 2008, SLC will withdraw from the Federal Consolidation Loan market. These actions will apply to new loan applications, and will not affect the nature or servicing of borrowers' existing loans with the company. SLC expects these changes to be temporary and will evaluate returning to these schools and offering Federal consolidation loans as student loan market conditions improve.

Continued disruption in the capital markets has increased lenders' funding costs, including SLC's, further reducing the profitability of student loans. In addition, unprecedented federal legislation, in the form of the College Cost Reduction and Access Act, has significantly impacted the education finance industry by materially decreasing profit margins earned on federal student loans. Amidst these challenges, SLC has remained focused on providing students and their families access to high quality education financing. While a number of lenders have exited the industry altogether, SLC continues to originate Federal Stafford Loans and Federal PLUS Loans as well as private loans, such as CitiAssist[R] Loans.

Mr. Reardon also said, "SLC is committed to providing superior customer service that schools and borrowers have come to expect from us over the past 50 years. While market conditions have deteriorated and the environment has created headwinds, we are making adjustments that will enable us to serve the needs of our shareholders, through the efficient allocation of our capital resources and continued focus on originating loans at the many schools where the economics allow for acceptable returns."

SLC is working closely with affected schools and their prospective borrowers to minimize disruption and to position SLC to resume doing business with these customers as economic conditions improve. Additionally, for borrowers interested in consolidating their federal student loans, SLC offers other attractive repayment options, including extended and graduated repayment plans.

About Citi

Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.

The Student Loan Corporation (NYSE: STU) is one of the nation's leading originators and holders of insured student loans providing a full range of education financing products and services to meet the needs of students, parents, schools and lenders. The company was previously a division of Citibank and became a NYSE-listed corporation in 1992. Citibank, N.A. is the majority shareholder. Citibank was one of the first banks to finance higher education, beginning in 1958.

For information or inquiries regarding student loans, please call 1-800-STUDENT. Customers with Telecommunication Devices for the Deaf (TDD) may call 1-800-846-1298. College planning and financing information is also available at www.studentloan.com.

Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission.