Student loans and your mortgage: which payment the lender counts
The federal repayment plans changed in 2026. SAVE has ended, a new plan called RAP started in July, and a large number of borrowers are moving between them. The payment your mortgage lender counts depends on which plan you are in, what your credit report shows and whether the loan goes to Fannie Mae or Freddie Mac.
Student loans count in your debt-to-income ratio like any other debt, using a monthly payment. The question is which payment. For a borrower with a large balance, the answer can move the qualifying number by more than a thousand dollars a month.
Which payment the lender uses
On a conventional loan, the starting point is the payment on your credit report. If it is wrong, your most recent student loan statement can be used instead. The rules split when the credit report shows $0 or no payment at all:
| Credit report shows | Fannie Mae | Freddie Mac |
|---|---|---|
| A payment above $0 | That payment | That payment |
| $0 on an income-driven plan | $0, if documentation confirms the plan bills $0 | 0.5% of the balance, unless a payment above $0 is documented |
| $0 in deferment or forbearance | 1% of the balance, or the fully amortizing payment | 0.5% of the balance, unless a payment above $0 is documented |
Two things follow. A $0 payment is not always $0 in your ratio. And because Fannie Mae and Freddie Mac use different percentages, the same borrower can qualify for different amounts depending on where the loan is sold. Which rules apply depends on the lender and the loan, so it is worth asking for both numbers.
Fannie Mae’s student loan rules have no separate exception for a loan on track for Public Service Loan Forgiveness, so plan on the payment counting until the loan is actually forgiven.
Where the federal plans stand
- SAVE has ended. A court order ended it in March 2026. Interest has been accruing since August 2025. Starting in July 2026, servicers began sending each SAVE borrower a 90-day notice to choose a new plan; borrowers who do not choose are moved to a standard plan. Many are still in forbearance while that plays out.
- RAP started July 1, 2026. The Repayment Assistance Plan sets the yearly payment as a percentage of your whole adjusted gross income: 1% at just over $10,000, rising one point for each $10,000 of income, up to 10% above $100,000. The monthly payment is that amount divided by 12, minus $50 for each dependent.
- RAP never bills $0. The minimum is $10 a month. Income-based repayment still exists and can bill $0 at very low incomes, but for most professionals the $0 option is gone.
- ICR and PAYE are being retired by July 1, 2028.
A worked example
A $180,000 balance, adjusted gross income of $150,000, single, no dependents. Under RAP, 10% of $150,000 is $15,000 a year, or $1,250 a month.
| Situation | Fannie Mae counts | Freddie Mac counts |
|---|---|---|
| In SAVE forbearance, $0 on the credit report | $1,800 (1%) | $900 (0.5%) |
| Moved to RAP, $1,250 documented | $1,250 | $1,250 |
Moving from forbearance to RAP lowers the Fannie Mae number by $550 a month and raises the Freddie Mac number by $350. At a 45% debt-to-income limit, $550 of monthly debt is about $1,220 of required monthly income. At different incomes and balances the result can reverse, so this is a calculation to run on your own numbers, not a rule of thumb.
Timing a plan change around a mortgage
- Know what your credit report shows today. A plan change can take weeks to reach the credit bureaus. Until it does, the lender works from the report or from a current statement.
- Get the new payment in writing. A servicer statement or approval letter showing the new monthly amount is what lets a lender use it before the credit report catches up.
- Price both agencies before you switch, if you are in forbearance now. The switch can help one side and hurt the other.
- Avoid switching mid-application without telling your loan officer. A new payment means the approval has to be rerun.
FHA and VA loans use their own student loan formulas, which differ from both of the above. If one of those programs fits you better, the payment has to be recalculated under its rules.
What decides it on your file
- Your balance and your plan, and what the credit report shows for each loan.
- Your adjusted gross income, filing status and dependents, if RAP is in the picture. Filing jointly uses combined income.
- Which agency the loan goes to, which can change the qualifying payment by hundreds of dollars a month.
I would run the qualifying payment both ways before you change plans. It takes a statement and your last tax return, and it can be the difference between two loan amounts.
General information about conventional underwriting and federal student loan repayment plans as of October 2026, not a commitment to lend or advice about which repayment plan to choose. Federal plan rules and timelines can change; confirm your options with your servicer or at StudentAid.gov. Individual lenders may apply requirements stricter than the agency rules described. The example uses round numbers for illustration only. Forest Hills Mortgage LLC, NMLS #1982611. Matt Mergo, NMLS #563819. Licensed in Florida, Pennsylvania and Texas. Equal Housing Opportunity.
Big balance? Let’s find the number that counts.
Send me your balance, your current plan and what your credit report shows. I will show you the qualifying payment under both agencies and what a plan change would do to it.