SLM (SLM) 10-Q 2015 Q3 Quarterly report

Exhibit 12.1

SLM CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in thousands)

	Years Ended December 31,											Nine Months Ended September 30,
'	2010			2011		2012		2013		2014		2014		2015
Income (loss) before income tax expense (benefit)	$	(122,669	)	$	87,848	$	341,871	$	416,528	$	333,752	$	289,570	$	294,304
Add: Fixed charges	146,256			107,896		84,708		91,182		98,404		68,406		96,661
Total earnings	$	23,587		$	195,744	$	426,579	$	507,710	$	432,156	$	357,976	$	390,965
Interest expense	$	143,927		$	105,385	$	82,911	$	89,085	$	95,815	$	67,842	$	94,078
Rental expense, net of income	2,329			2,511		1,797		2,097		2,589		564		2,583
Total fixed charges	146,256			107,896		$	84,708	91,182		98,404		68,406		96,661
Preferred stock dividends	—			—		—		—		12,933		8,078		14,606
Total fixed charges and preferred stock dividends	$	146,256		$	107,896	$	84,708	$	91,182	$	111,337	$	76,484	$	111,267
Ratio of earnings to fixed charges(1) (2)	—			1.81		5.04		5.57		4.39		5.23		4.04
Ratio of earnings to fixed charges and preferred stock dividends(1) (2)	—			1.81		5.04		5.57		3.88		4.68		3.51

(1) For purposes of computing these ratios, earnings represent income (loss) before income tax expense plus fixed charges. Fixed charges represent interest expensed and capitalized plus one-third (the proportion deemed representative of the interest factor) of rents, net of income from subleases.

(2) Due to a pre-tax loss from operations of $122,669 for the year ended December 31, 2010, the ratio coverage was less than 1:1. We would have needed to generate $122,669 million of additional earnings in the year ended December 31, 2010 for the ratio coverage to equal 1:1.