This Pricing Supplement relates to the Debt Securities described below (the "Notes"). You should read it together with the Offering Circular dated January 23, 2003 (the "Offering Circular"), relating to the Universal Debt Facility of the Federal National Mortgage Association ("Fannie Mae"). Unless defined below, capitalized terms have the meanings we gave to them in the Offering Circular.

The Notes, and interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or of any agency or instrumentality thereof other than Fannie Mae.

Certain Securities Terms

1.

Title:

3.25% Notes Due August 15, 2008

2.

Form:

Fed Book-Entry Securities

3.

Specified Payment Currency

a.

Interest:

U.S. dollars

b.

Principal:

U.S. dollars

4.

Aggregate Original Principal Amount:

$4,000,000,000.00

5.

Issue Date:

July 25, 2003

6.

Maturity Date:

August 15, 2008

Amount Payable on the Maturity Date:

100.00% of principal amount

7.

Subject to Redemption Prior to Maturity Date

X

No

__

Yes

8.

Interest Category:

Fixed Rate Securities

______________ 
"Benchmark Notes" is a registered trademark of Fannie Mae. 
 
 

9.

Interest

a.

Frequency of Interest Payments:

semiannually

b.

Interest Payment Dates:

the 15th day of each February and August

c.

First Interest Payment Date:

August 15, 2003

d.

Interest rate per annum:

3.25%

 

Additional Information Relating to the Notes

1.

Identification Number(s)

a.

CUSIP:

31359MSQ7

b.

ISIN:

US31359MSQ77

c.

Common Code:

17365162

2.

Listing Application

	__No
	X  Yes:  Luxembourg Stock Exchange

3.

Eligibility for Stripping on the Issue Date

	__ No
	X Yes

X Minimum Principal Amount: $ 800,000.00

Offering

1.

Pricing Date:

July 23, 2003

2.

Method of Distribution:

X Principal

__ Non-underwritten

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3.

Dealers

Underwriting Commitment

Bear, Stearns & Co. Inc.

$ 1,121,000,000

Morgan Stanley & Co. Incorporated

1,193,000,000

UBS Securities LLC

1,121,000,000

Credit Suisse First Boston LLC

55,000,000

Deutsche Bank Securities Inc.

55,000,000

First Tennessee Bank National Association

70,000,000

Goldman, Sachs & Co.

55,000,000

HSBC Securities (USA) Inc.

55,000,000

J.P. Morgan Securities Inc.

55,000,000

Lehman Brothers Inc.

55,000,000

Merrill Lynch, Pierce, Fenner & Smith Incorporated

55,000,000

Citigroup Global Markets Inc.

55,000,000

The Williams Capital Group, L.P.

55,000,000

Total

$ 4,000,000,000

a.

Representative(s):

Bear, Stearns & Co. Inc. Morgan Stanley & Co. Incorporated UBS Securities LLC

b.

Stabilizing Manager:

Bear, Stearns & Co. Inc.

4.

Offering Price:

X

Fixed Offering Price: 99.867% of principal amount, plus accrued interest, if any, from the Settlement Date

__

Variable Price Offering

5.

Dealer Purchase Price: 99.767% of principal amount

a.

Concession:

0.08%

b.

Reallowance:

N/A

6.  Supplemental Plan of Distribution:  See Annex 1
 

Settlement

1.

Settlement Date:

July 25, 2003

2.

Settlement Basis:

delivery versus payment

3.

Settlement Clearing System:

U.S. Federal Reserve Banks

 
 
 
 
 

United States Taxation

We have engaged Dewey Ballantine LLP as special tax counsel to review the discussion in the Offering Circular under the heading "United States Taxation." They have given us their written legal opinion that the discussion correctly describes the principal aspects of the United States federal tax treatment of investors who purchase the Notes described in the Offering Circular. The discussion in the Offering Circular is a general discussion that may not apply to your particular circumstances.