Process · 5 min read
How do student loans count on a mortgage if I am on an income-driven plan?
August 18, 2026 · Written by Bill Egan, NMLS 7342
Short answer
If the credit report shows a real monthly payment, that payment is often what we use. If it shows $0, Fannie Mae and Freddie Mac — the two companies that buy most regular home loans — do not use the same math. Fannie can allow a documented income-driven payment, even $0 if the papers prove it, and may use 1 percent of the balance on some deferred loans. Freddie often uses half a percent of the balance when the report shows $0. Egan Financial Group LLC uses the investor on your file, not a blog.
01
Why this comes up
Your student loan payment is low or zero because you are on an income-driven plan. One website said that means $0 on the mortgage. Another said they count 1 percent of the balance. You reached out because you cannot tell which payment will show up when a person has to approve the loan.
02
Where this goes wrong
The pre-approval ignored student loans. Underwriting then adds a payment based on the balance, and your debt-to-income ratio jumps. The approval no longer supports the price. You are under contract. Forgiveness that is not documented does not erase the debt for this loan. That is how a $0 payment on a student site becomes a deal-killer on a Closing Disclosure calendar.
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What we do about it
We pull the credit report and the student-loan papers before you shop at a price the file cannot hold. We tell you which investor rule applies on this loan. Egan Financial Group LLC (NMLS 2647764) will not pretend a $0 income-driven payment is universal.
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How to get ready
Bring the current student-loan statement, not just the credit report. If you recertify your income every year, bring the latest recertification. Do not consolidate loans or skip a recertification the month you apply without telling us. Ask us to run the payment both ways if you want a conservative number you can actually offer on.