Effective November 1st, Freddie Mac is making it easier for us to calculate a minimum monthly payment on student loans. There will no longer be different rules for loans in repayment stage, loans in deferment, and loans in forbearance. Here’s how. If the monthly payment on the credit report is $0, use 0.5% of the outstanding balance as reported on the credit report. Second, if the monthly payment is > $0 on the credit report use that monthly amount or other file documentation from the lender.
Thus, I expect for borrowers with student loan debt we will rely on Freddie Mac’s guidelines instead of Fannie’s which are more confusing and they normally require us to use 1% of the balance owed on student loans as a monthly payment.