TIP OF THE DAY- FREDDIE NEW STUDENT LOAN POLICY

 

TIP OF THE DAY- FREDDIE MAC NEW STUDENT LOAN POLICY

For student loans in…

Previous requirements

New requirements

Repayment

Use the greater of:

·         The payment amount on the credit report

·         0.5% of the original loan balance

·         0.5% of the current loan balance

·         If the monthly payment amount is greater than zero, use the monthly payment amount reported on the credit report or other file documentation, or

·         If the monthly payment amount reported on the credit report is zero, use 0.5% of the outstanding balance, as reported on the credit report

Deferment

Use the greater of:

·         The payment amount on the credit report

·         1% of the original loan balance

·         1% of the outstanding balance

Forbearance

Loan Product Advisor feedback messages will be updated by November 1, 2018 to reflect these changes.

Guide impact: Section 5401.2

justin brown