Freddie Mac Selling Guide : https://guide.freddiemac.com/app/guide/section/5401.2

Student loans in deferment, forbearance or repayment, including income-driven repayment plans

In all cases, an amount greater than zero must be included in the monthly DTI ratio for all student loans, as described below:

If the monthly payment amount reported on the credit report is greater than zero, the Seller must use the amount reported on the credit report, unless other documentation in the Mortgage file supports a different current payment amount greater than zero, or

If the monthly payment amount reported on the credit report is zero, the Seller must use 0.5% of the outstanding loan balance, as reported on the credit report, unless other documentation in the Mortgage file supports a different current payment amount greater than zero

For student loans in income-driven repayment plans when documentation in the Mortgage file indicates the Borrower must recertify their income and/or that the Borrower’s payment will increase prior to or on the first Mortgage payment due date, the Seller may not use the monthly payment amount described above in the DTI ratio and must instead use:

The greater of the current payment or 0.5% of the outstanding loan balance, or

The documented future payment amount if greater than the current payment, or

The future payment amount that is less than or equal to the current payment, provided that the Mortgage file contains documentation that the Borrower has recertified their income and the future payment amount has been approved. The future payment amount must be greater than zero.

Student loan forgiveness, cancelation, discharge and employment-contingent repayment programs

The student loan payment may be excluded from the monthly DTI ratio provided the Mortgage file contains documentation that indicates the Borrower is eligible or approved, as applicable, for the student loan forgiveness, cancelation, discharge or employment-contingent repayment program, and the Seller is not aware of any circumstances that will make the Borrower ineligible in the future.

Evidence of eligibility or approval must come from the student loan program or the employer, as applicable.

Additionally, the Mortgage file documentation must indicate:

There are 10 or fewer monthly payments remaining until the full balance of the student loan is forgiven, canceled, discharged or in the case of an employment-contingent repayment program, paid, or

The monthly payment is deferred or is in forbearance and the full balance of the student loan will be forgiven, canceled, discharged or in the case of an employment-contingent repayment program, paid, at the end of the deferment or forbearance period.

https://selling-guide.fanniemae.com/sel/b3-6-05/monthly-debt-obligations#P3441

Student Loans

If a monthly student loan payment is provided on the credit report, the lender may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the lender may use the monthly payment that is on the student loan documentation (the most recent student loan statement) to qualify the borrower.

If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below.

• If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment.

• For deferred loans or loans in forbearance, the lender may calculate

1.  a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or
2. a fully amortizing payment using the documented loan repayment terms.

STUDENT LOAN UNDERWRITING CRITERIA

Mortgagee Letter 2021-13 | Subject Student Loan Payment Calculation of Monthly Obligation

II.A.4.b.iv(H) Student Loans (TOTAL)

(1) Definition

Student Loans refers to liabilities incurred for educational purposes.

(2) Standard

The Mortgagee must include all Student Loans in the Borrower’s liabilities, regardless of the payment type or status of payments.

(3) Required Documentation

If the payment used for the monthly obligation is less than the monthly payment reported on the Borrower’s credit report, the Mortgagee must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor or student loan servicer.

The Mortgagee may exclude the payment from the Borrower’s monthly debt calculation where written documentation from the student loan program, creditor, or student loan servicer indicates that the loan balance has been forgiven, canceled, discharged, or otherwise paid in full.

(4) Calculation of Monthly Obligation For outstanding Student Loans, regardless of payment status, the Mortgagee must use: 

    • the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or 

    • 0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero.

II.A.5.a.iv(G) Student Loans (Manual)

(1) Definition

Student Loan refers to liabilities incurred for educational purposes.

(2) Standard

The Mortgagee must include all Student Loans in the Borrower’s liabilities, regardless of the payment type or status of payments.

(3) Required Documentation

If the payment used for the monthly obligation is less than the monthly payment reported on the Borrower’s credit report, the Mortgagee must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor or student loan servicer.

The Mortgagee may exclude the payment amount from the monthly debt calculation where written documentation from the student loan program, creditor, or student loan servicer indicates that the loan balance has been forgiven, canceled, discharged, or otherwise paid in full.

(4) Calculation of Monthly Obligation For outstanding Student Loans, regardless of payment status, the Mortgagee must use: 

    • the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or 

    • 0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero.

VA Pamphlet 26-7, Revised Chapter 4: Credit Underwriting | pg 4-33 

https://www.benefits.va.gov/WARMS/docs/admin26/pamphlet/pam26_7/ch04.pdf

g. Deferred Student Loan Payments

If student loan repayments are scheduled to begin within 12 months of the date of VA loan closing, lenders should consider the anticipated monthly obligation in the loan analysis. If the borrower is able to provide evidence that the debt may be deferred for a period outside that timeframe, the debt need not be considered in the analysis.

HB-1-3555 |CHAPTER 11: RATIO ANALYSIS |pg 11-4

7. Student loans

• For outstanding student loans, regardless of the payment status, lenders must use:

    o The payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or

    o One half (.50) percent of the outstanding loan balance documented on the credit report or creditor verification, when the payment amount is zero.

• Student loans in the applicant’s name alone but paid by another party remain the legal responsibility of the applicant. The applicable payment must be included in the monthly debts.

• Student loans in a “forgiveness” plan/program remain the legal responsibility of the applicant until they are released of liability from the creditor. The applicable payment must be included in the monthly debts.

• Co-signed obligations are addressed below in section 11.