EXHIBIT 12.1 USA EDUCATION, INC. RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (DOLLARS IN THOUSANDS) SIX MONTHS ENDED YEARS ENDED DECEMBER 31, JUNE 30, --------------------------------------------------------- --------------------- 1995 1996 1997 1998 1999 1999 2000 --------- --------- --------- --------- --------- --------- --------- Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries........................... $ 504,897 $ 600,327 $ 759,748 $ 750,131 $ 751,652 $ 355,285 $ 415,795 Add: Fixed charges................... 3,039,522 2,600,048 2,544,584 1,948,995 2,140,588 954,888 1,324,488 Less: Other adjustments.............. (2,421) (711) -- -- -- -- -- Less: Preferred dividends............ (16,452) (16,452) (18,428) (23,998) (25,803) (11,654) (21,234) ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total earnings......................... $3,525,546 $3,183,212 $3,285,904 $2,675,128 $2,866,437 $1,298,519 $1,719,049 ========== ========== ========== ========== ========== ========== ========== Fixed charges Interest expenses.................... $3,020,649 $2,582,885 $2,526,156 $1,924,997 $2,114,785 $ 943,234 $1,303,254 Preferred dividends.................. 16,452 16,452 18,428 23,998 25,803 11,654 21,234 Other adjustments.................... 2,421 711 -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total fixed charges...................... $3,039,522 $2,600,048 $2,544,584 $1,948,995 $2,140,588 $ 954,888 $1,324,488 ========== ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges and preferred stock dividends.............. 1.16 1.22 1.29 1.37 1.34 1.36 1.30 ========== ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges....... 1.16 1.23 1.29 1.38 1.34 1.36 1.30 ========== ========== ========== ========== ========== ========== ========== - ------------------------------ For purposes of the "earnings" computation, "other adjustments" includes capitalized interest cost. For purposes of the "fixed charges" computation, "other adjustments" includes capitalized interest cost.