Student Loan refers to liabilities incurred for educational purposes.
If the payment used for the monthly obligation is:
- less than 1 percent of the outstanding balance reported on the Borrower’s credit report, and
- less than the monthly payment reported on the Borrower’s credit report;
Calculation of Monthly Obligation
Regardless of the payment status, the Mortgagee must use either:
- the greater of:
- 1 percent of the outstanding balance on the loan; or
- the monthly payment reported on the Borrower’s credit report; or
- the actual documented payment, provided the payment will fully amortize the loan over its term.