US Bank Credit Approval - Student Loans

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.


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 ?

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.