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Can someone please explain the student loan forgiveness program? These loans totaling 57k are the only thing really standing in my way of getting a loan. Thank you!

by christa697 from Princeton, Oregon. May 9th 2016 Reply


Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

I know a little about this, it is normally for nursing students. Each year as you work as a nurse, they forgive a portion of the debt. This comes from knowing someone who was a nurse and worked off the debt over a 5 year period. I am not sure if it pertains to different fields, or what the exact nature of the forgiveness is. I hope this helps.

May 9th 2016
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Ellen Wright (ellenwrightadams)
#49 ranked lender in Oregon - 25 contributions

I don't know what field you are in. However I was involved in one where the buyer was a mental health counselor. FHA & conventional guidelines are: on a Debt relief student loan program which is the forgiveness each yr. you may not have to pay a monthly payment, however if the mo. payment is NOT on the credit report, then we have to use 1% of the balance owed in your case of 57K , we would use 570.00 per month just like any other bill you owe. I would like to speak to you and see if I can help you or get around this, Ellen @ 541-521-7192 I am in Oregon as well.

May 9th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

The program is not a onetime forgiveness.. they look and reanalyze your scenario each year and make a determination as to how much if any they will be forgiving.. because of this, the debt will remain on your credit report until the loan has been forgiven entirely, or until you pay it off.. and if it's on your credit report, and it does not show a monthly payment, then the lending rules require us to account for 1% anticipated payment and add that to your debt to income ratio. There's also talk in the media about student loans being forgiven, but that's never going to happen.. at least not anytime soon.. You could apply for a Income Based Reduction (IBR) loan adjustment.. This is where they reduce your payment based on your income and so long as they list that adjusted payment on your credit report, then the lender will use the listed payment for qualifying purposes.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

May 10th 2016
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