NEWTON, Mass., September 01, 2009 - In recognition of September as National College Savings Month, Upromise by Sallie Mae provides useful tips on how to plan and save money for college. A national study from Sallie Mae and Gallup found that nine out of 10 parents of children under 18 say it is likely their children will pursue higher education; however, four out of 10 have not started saving.

“The beginning of a new school year is the perfect time for families to create a plan to save for college,” said David Rochon, president of Upromise. “Start by determining how much college will cost, set a goal, save what you can and earn college savings from Upromise. Putting away even as little as $25 a month in a college savings account can significantly add up over time.”

The following tips, information and tools can help anyone save money and appropriately plan for college costs:

Estimate the full cost of a college degree. Sallie Mae’s Education Investment Planner, available at www.SallieMae.com/invest, is a free tool that can help families estimate future college costs based on school type. The Education Investment Planner helps families determine how much they need to save to achieve their goal and even lets them compare how increasing savings now compares to the cost of borrowing in the future.

Open a 529 plan. 529 college savings plans enable families to open accounts to save for higher education expenses while their earnings grow free of federal income taxes. Savings can be used at any eligible two- or four-year college, vocational school or technical institution around the country. Many states offer incentives to residents ranging from state tax deductions or tax credits to matching grants, and most have low contribution minimums. More information on the benefits of 529 plans and how to get started is available at www.529.com, an informational site created by Sallie Mae affiliate Upromise Investments, the largest administrator of college savings plan in America.

Earn free money. Upromise by Sallie Mae, available at www.Upromise.com, is a free program that offers yet another way to earn extra money for college. Members can receive money back while making eligible purchases such as gas and groceries, dining out, and back-to-school supplies. Upromise members have earned nearly $500 million in member rewards since 2001. Rewards accumulate in a member’s Upromise account and can be transferred into a 529 college savings plan account administered by Upromise Investments or used to repay eligible Sallie Mae-serviced student loans. During the period April 2001 to date, over $100 million in Upromise rewards have been transferred into 529 plan accounts administered by Upromise Investments.

Get friends and family involved. Family and friends can contribute their Upromise rewards to help a loved one save for college. Upromise members who invite family and friends to help save for college earn an average of three times more than those who do not. Grandparents, aunts, uncles and friends can set up 529 plan accounts for a beneficiary of their choice and retain the same benefits and tax advantages as a parent who opens a similar account. Family and friends can also celebrate milestones by making gift contributions to any Upromise Investments-administered 529 plan account through Ugift, an easy-to-use online tool.

Learn and Exchange Savings Tips. Connect with like-minded people online to share savings tips by joining Upromise’s Community, becoming a fan on Facebook or following Upromise on Twitter.

About Sallie Mae

SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation’s leading provider of saving, planning and paying for education programs. Through its subsidiaries, the company manages $188 billion in education loans and serves 10 million student and parent customers. Through its Upromise affiliates, the company also manages more than $19 billion in 529 college-savings plans, and is a major, private source of college funding contributions in America with 11 million members and more than $475 million in member rewards. Sallie Mae and its subsidiaries offer debt management services as well as business and technical products to a range of business clients, including higher education institutions, student loan guarantors and state and federal agencies. More information is available at www.SallieMae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

About Upromise by Sallie Mae

Launched in April 2001, today Upromise by Sallie Mae is a major, private source of college funding contributions in America, with over 11 million members and more than $475 million in member rewards. Membership is free and can help families save money for college while making everyday purchases of products and services at more than 21,000 grocery and drug stores, 10,000 gas stations, 8,500 restaurants, as well as hundreds of retail store locations, and over 650 online shopping sites. Upromise participating companies include Bank of America, ExxonMobil Corporation, McDonald’s®, JCPenney.com, LandsEnd.com, Sears.com and hundreds of others. Upromise also makes it easy for families to start their own college savings strategy through tax-advantaged 529 college savings plans administered by Upromise Investments or by using Upromise contributions to help pay down eligible student loans. Specific terms and conditions apply. Participating companies, contribution levels, terms and conditions are subject to change without notice. Subject to minimum transfer amounts. For additional information, visit upromise.com.

Before investing in any 529 plan, you should consider whether your or the designated beneficiary's home state offers a 529 plan that provides its taxpayers with state tax and other benefits that are only available through the home state's 529 plan. Investment objectives, risks, charges, expenses, and other important information are included in a 529 college savings plan's offering statement; read and consider it carefully before investing.

Note: Upromise friends and family savings calculation is based on Upromise internal reporting data through December 2008 showing that members who have family and friends linked to their account have accumulated over three times more in average monthly Upromise savings than members who have not.

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