What payment amount should be used for student loans?
If a payment amount is shown on the credit report, it may be used for qualifying purposes. However, if the required payment is listed as $0, documentation must be obtained to verify that a zero payment is due to the borrower being approved for an income based repayment (IBR) plan. If the required monthly payment is not listed on the credit report, the monthly payment may be determined by obtaining copies of the loan documentation or using 1% of the outstanding balance. Under the EZ DecisioningSM program, payments may be calculated based on the Agency guidelines pertaining to this topic which apply to the findings used (refer to Freddie Mac guidelines when valid Loan Product Advisor® (LPASM) findings are used; refer to Fannie Mae when valid Desktop Underwriter® (DU®) findings are used).