VA mortgage and deferred student loans

[Anonymous]

So I read this ' if the Veteran or other borrower provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing, a monthly payment does not need to be considered.” If my husband is still in school would documentation that he will be in school until 2022 be sufficient

[VALoanMaster]

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@Anonymous wrote:
So I read this ' if the Veteran or other borrower provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing, a monthly payment does not need to be considered.” If my husband is still in school would documentation that he will be in school until 2022 be sufficient

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Hi Gem1981,

Unfortunately no because there is no guarantee that he will stay in school so you'll have to get a letter stating the student loans will be deferred for at least 12 months. VA has some pretty lenient calculations for student loans so you may not even need for the loans to be in deferment. Here's what I mean. Let's say your husband's total SL balance is $100,000. One of the ways that VA allows us to calculate the monthly payment is this: $100,000 X 5% / 12 = the monthly payment - $100,000 X 5% = $5,000 /12 = $416.66 per month.

Edit: I made a mistake of using.5% when it's actually 5%.

[Anonymous]

Oh okay thanks! I will also be responding to your private message as well to see if you can help us.  Thanks again!

[Anonymous]

Is it 5% or .5%? I was told 5%. Just want to makes sure I was getting the correct info. That makes a much bigger difference!

[Anonymous]

I think I saw 5 percent online

[VALoanMaster]

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@Anonymous wrote:
Is it 5% or .5%? I was told 5%. Just want to makes sure I was getting the correct info. That makes a much bigger difference!

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5% is correct.

[Anonymous]

Should I apply for the Paye repayment plan now.  It would be lower than the 5% calcualation I believe. 

[VALoanMaster]

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@Anonymous wrote:

Should I apply for the Paye repayment plan now.  It would be lower than the 5% calcualation I believe. 

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Yes.