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USDA Student Loan Calculation

Did you know that USDA has made changes to its Non-Fixed Student Loan calculation?

Non- Fixed Student Payment loans has been changed from 1% to .50% - See below:

Non-Fixed payment loans: Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation. The higher of one half percent (.50%) of the loan balance or the actual payment reflected on the credit report must be used as the monthly payment in the underwriter decision. No additional documentation is required. 

See Wholesale Underwriting Guides for more details.