Announcement 2019-082: USDA Student Loan Update

USDA has updated the student loan calculation.

Student loan update

Effective immediately, USDA has updated the student loan calculation for qualifying purposes. Section 6.2 Liabilities of the product profile has been updated as follows.


  • Fixed payment loans: A permanent amortized, fixed payment may be used in the debt ratio with documentation to verify the payment, interest rate and repayment term are fixed.
  • Non-Fixed payment loans: Payments for deferred loans, Income Base Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements must use:
    • 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.
    • No additional documentation is required.


Please reference the product profiles for complete details.