We have a situation where an applicant has an outstanding student loan on the credit report. The loan does not show deferred nor does it show a payment amount or a past due. According to the applicant, the loan is reviewed annually along with their tax returns by the holder of the student loan. Due to this review, the applicant has not had to make any payments in the past 3 years; however, based on statements interest is still accruing and they receive a monthly statement showing a $0 payment amount. The holder of the student loan will not provide any guidance on the stipulation of either the eventual repayment or a final debt forgiveness. Has anyone else ran into this and how did you handle it?

You would have to get your hands on the contract to determine whether the loan payments will start in the next 12 months. If you can't make that determination, then you probably have no choice but to include the scheduled loan payments in the DTI calculation. The borrower has to have a copy of the loan contract or they should be required to get you a copy from the debt holder.