The company's 2008 outlook was cut to $2.60 to $2.80 a share from a previous expectation of $3.25 a share, with SLM citing increased costs from replacing its interim funding facility.
The mean estimate of analysts polled by Thomson Financial is currently $3.12 a share.
For its fourth-quarter, SLM sees core earnings of 52 cents to 57 cents a share, versus the 71 cents a share analyst estimate.
SLM said that in an effort to resolve various disputes with a buyers group made up of J.C. Flowers, Bank of America and J.P. Morgan, it had offered the group a chance to submit a new proposal with no pre-conditions. The buyers group said it wasn't interested in exploring this proposal.
Because the offer was rejected, SLM said, it intends to pursue its existing lawsuit against the group.
The Reston, Va.-based college savings company also said it had been given indications that 10 financial institutions had interest in funding new secured warehouses for more than $30 billion.
Shares of SLM fell 9% to $29.10 on Wednesday, a new 52-week low. The previous low of $31.80 was reached on Monday. Ryan Vlastelica rv/pc
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