US Bank Credit Approval - Student Loans

Off-Ramp
1

Just wanted to put this out there because I think this is new for US Bank. If you have student loans that don’t show a monthly payment on your credit report (e.g., you’re on IBR/PAYE) they will calculate your monthly payment as 3% of the total loan balance. If you have a large loan balance this can seriously throw your DTI off. Mine came back really high despite refinancing a few months ago where it needed to be under 40. I submitted some documentation showing my actual monthly payment and was approved no problem.

I suspect this is a newer rule because I leased another car through US Bank a little over a year ago with the same obligations and never had to submit proof of my student loan payment.

2 Likes
2

The US Bank “new” rule seems kind of reasonable to me absent info to the contrary. What were they supposed to do ? Ignore your debts ?

3

No. I assumed they would calculate it as 1% like mortgage lenders do.

Also, I explained why I thought it was a new rule so no need for the quotes. Just wanted others to be prepared in case they were in the same position.