SLM (SLM) 10-Q 2016 Q2 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,										Six Months Ended June 30,
	2011		2012		2013		2014		2015		2015		2016
Income before income tax expense	$	87,848	$	341,869	$	416,527	$	333,752	$	439,064	$	230,595	$	196,550
Add: Fixed charges	107,896		84,709		91,182		98,404		132,048		62,356		83,864
Total earnings	$	195,744	$	426,578	$	507,709	$	432,156	$	571,112	$	292,951	$	280,414
Interest expense	$	105,385	$	82,912	$	89,085	$	95,815	$	128,619	$	60,619	$	82,067
Rental expense, net of income	2,511		1,797		2,097		2,589		3,429		1,737		1,797
Total fixed charges	107,896		84,709		$	91,182	98,404		132,048		62,356		83,864
Preferred stock dividends	—		—		—		12,933		19,595		9,693		10,382
Total fixed charges and preferred stock dividends	$	107,896	$	84,709	$	91,182	$	111,337	$	151,643	$	72,049	$	94,246
Ratio of earnings to fixed charges(1)	1.81		5.04		5.57		4.39		4.33		4.70		3.34
Ratio of earnings to fixed charges and preferred stock dividends(1)	1.81		5.04		5.57		3.88		3.77		4.07		2.98

(1) For purposes of computing these ratios, earnings represent income 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.