Hi! My obligation under ibr is currently $0 per month. Unfortunately, in order to obtain a mortgage loan I have to be obligated to pay something, anything at all or they will calculate my payments for the student loan at almost $2k per month which would be too much as far as debt to income ratio is concerned. What can I do about this? I have contacted my student loan holders and it is either my current payment of $0 or $1.5k per month. Both are no good as one thousand is too much for me. I told them I can make payments around $200 per month but apparently that is not possible at all. They said I can make those payments if I want but as far as being REQUIRED by them to pay that amount; I won’t be. I have no clue what to do.
May 3, 2014
This is an excellent question.
The first thing I would say is that you have more than two options. I’m guessing that the two they are giving you are the 10-year plan and staying on your current plan. There are many other student loan plans available. You can see what your estimated payments would be here: https://studentloans.gov/myDirectLoan/repaymentEstimator.action
I’d also add that you can have them recalculate your current income-driven repayment plan. You can go to the department of education website and have them recalculate your income driven payment immediately. You also have the option of changing to a different income driven repayment plan. The form is here: https://studentloans.gov/myDirectLoan/ibrInstructions.action
Given that you are applying for a mortgage, I’m assuming that you now have some form of income. Make sure you document this income if you choose to apply for an income-driven plan. Normally the goal is to keep payments as low as possible. In your case, you want to show enough income so that you are required to make a payment of some sort. The repayment estimator should be a helpful tool as you go through this process.
Best of luck to you!
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