> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Student Loan Agreement for Deferred or Unknown Payments

> Provide the student loan agreement when payments are deferred or not reported so the lender can determine an appropriate qualifying payment.

## What this task is

This task collects the **student loan agreement or promissory note** when a student loan shows **no current payment or an unknown payment amount** but still has an outstanding balance.
The agreement should outline:

* The **original loan amount** and **current balance**,
* **Repayment terms**, including when payments begin or resume, and
* Any **deferment, forbearance, or income-based repayment provisions**.

The underwriter uses this information to determine a **qualifying payment amount** that should be included in the borrower’s **debt-to-income calculations**.

## When this task is required

This task is required when:

* A liability is identified as a **student or educational loan**, and
* The **monthly payment is reported as zero or is missing**, while the **unpaid balance is greater than zero**, and
* The loan is being considered a **qualifying liability** for the mortgage (not excluded under special program rules).

In these cases, the lender cannot rely on a “\$0 payment” and must instead determine a **reasonable payment based on documentation or program formulas**.

## Why this task is required

Even when a student loan is **deferred or not yet in repayment**, most mortgage guidelines require the lender to **account for a future payment**.
The loan agreement helps the underwriter:

* Understand when payments will **start or restart**,
* Identify the **expected payment amount or calculation method**, and
* Apply the correct **agency or investor rule** (for example, a percentage of the balance if no payment is stated).

Without this documentation, the lender may have to:

* Use **conservative assumptions** that increase the imputed payment, or
* Treat the file as **incomplete**, delaying underwriting decisions.

By reviewing the agreement, the lender can more accurately and fairly **estimate the borrower’s future obligations** and ensure the resulting [DTI](/entity-models/key-concepts/dti) is sound.

## Documents needed to resolve this task

To satisfy this task, provide:

* The **student loan agreement, promissory note, or most recent modification**:
  * Showing **loan type, balance, interest rate**, and **repayment terms**.
  * Including any sections that describe **deferment, forbearance, or income-based repayment**.
* If available, a **recent statement or servicer letter** that clarifies:
  * The **projected payment amount** once repayment begins, or
  * How the payment will be **calculated** under the current plan.

These documents allow the underwriter to determine an appropriate qualifying payment and incorporate it correctly into the borrower’s **total obligations**.