A $0 or deferred student loan payment generally cannot be used as reported: each agency sets a qualifying payment, with narrow exceptions. Fannie Mae accepts a documented $0 payment under an income-driven plan and, for deferred loans or loans in forbearance, allows 1% of the balance or a fully amortizing payment. Freddie Mac, FHA and USDA use 0.5% of the outstanding balance when the reported payment is zero; FHA and USDA apply this regardless of payment status. VA does not count a payment when the loan is deferred at least 12 months beyond closing; otherwise it uses five percent of the balance divided by 12, or the credit report payment if that is higher, and a lower payment needs a servicer statement.
Fannie Mae (conventional)
- A payment shown on the credit report, or on the latest student loan statement if the report is wrong, may be used. If the report shows no payment or $0, the lender must set the qualifying payment using one of the guide's options. Fannie Mae B3-6-05
- For a borrower on an income-driven payment plan, the lender may document that the actual payment is $0 and qualify the borrower with a $0 payment. Fannie Mae B3-6-05
- For deferred loans or loans in forbearance, the lender may use 1% of the outstanding balance, even if lower than the fully amortizing payment, or a fully amortizing payment based on the documented repayment terms. Fannie Mae B3-6-05
Freddie Mac (conventional)
- An amount greater than zero must be included for every student loan in deferment, forbearance or repayment. When the credit report shows zero, the seller must use 0.5% of the outstanding balance unless documentation supports a different payment above zero. Freddie Mac 5401.2
- For income-driven plans where the borrower must recertify income by the first mortgage payment due date, or the payment will increase, the seller must instead use options such as the greater of the current payment or 0.5% of the balance. Freddie Mac 5401.2
- The payment may be excluded if the borrower is eligible or approved for forgiveness, cancelation, discharge or an employment-contingent repayment program and either 10 or fewer payments remain or the loan stays deferred or in forbearance until the balance is forgiven. Freddie Mac 5401.2
FHA
- In both TOTAL and manual underwriting, all student loans must be included regardless of payment type or status. The lender uses the reported or documented payment when it is above zero, or 0.5 percent of the outstanding balance when the reported payment is zero. FHA 4000.1 II.A.4.b.iv FHA 4000.1 II.A.5.a.iv
- The payment may be excluded when written documentation from the program, creditor or servicer shows the balance has been forgiven, canceled, discharged or otherwise paid in full. FHA 4000.1 II.A.4.b.iv
VA
- No monthly payment needs to be considered if written evidence shows the loan will be deferred at least 12 months beyond closing. VA Pamphlet 26-7, Ch. 4 Topic 5
- For a loan in repayment or due to begin repayment within 12 months of closing, the lender uses five percent of the outstanding balance divided by 12 months, or the credit report payment if it is higher. VA Pamphlet 26-7, Ch. 4 Topic 5
- A lower credit report payment can be used only with a student loan servicer statement showing the actual terms, dated within 60 days of closing. VA Pamphlet 26-7, Ch. 4 Topic 5
USDA
- Regardless of payment status, lenders use the reported or documented payment when it is above zero, or one half (.50) percent of the outstanding balance when the payment is zero. USDA HB-1-3555 11.2
- Student loans in the applicant's name alone but paid by another party must still be included. Loans in a forgiveness plan remain the applicant's responsibility until the creditor releases the applicant, and the payment must be included. USDA HB-1-3555 11.2
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B3-6-05, Monthly Debt Obligations (Student Loans) (p. 520, 521)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5401.2(b), Liabilities included in the monthly DTI ratio: (i) Student loans (p. 5401-7, 5401-8)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.A.4.b.iv, Evaluating Liabilities and Debts (TOTAL): Student Loans (p. 217); II.A.5.a.iv, Evaluating Liabilities and Debts (Manual): Student Loans (Manual) (p. 295)
- VA Lender's Handbook (VA Pamphlet 26-7), August 12, 2026 version: Chapter 4, Topic 5: Debts and Obligations (student loans) (PDF p. 98)
- USDA HB-1-3555 Guaranteed Loan Program Handbook, March 2, 2026 version: Chapter 11, 11.2 The Ratios (B. The Total Debt Ratio, 7. Student Loans) (p. 11-4)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.