SLM (SLM) 10-Q 2017 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,
	2012		2013		2014		2015		2016		2016			2017
Income before income tax expense	$	341,869	$	416,527	$	333,752	$	439,064	$	414,436	$	301,072		$	378,272
Add: Fixed charges	84,709		91,182		98,404		132,048		189,717		134,124			220,979
Total earnings	$	426,578	$	507,709	$	432,156	$	571,112	$	604,153	$	435,196		$	599,251
Interest expense	$	82,912	$	89,085	$	95,815	$	128,619	$	185,908	$	131,329		$	217,777
Rental expense, net of income	1,797		2,097		2,589		3,429		3,809		2,795			3,202
Total fixed charges	84,709		$	91,182	98,404		132,048		189,717		134,124			220,979
Preferred stock dividends	—		—		12,933		19,595		21,204		15,698			12,577
Total fixed charges and preferred stock dividends	$	84,709	$	91,182	$	111,337	$	151,643	$	210,921	$	149,822		$	233,556
Ratio of earnings to fixed charges(1)	5.04		5.57		4.39		4.33		3.18		3.24		��	2.71
Ratio of earnings to fixed charges and preferred stock dividends(1)	5.04		5.57		3.88		3.77		2.86		2.90			2.57

(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.