The short version: SAVE's forbearance ended September 30, 2026. Borrowers who didn't choose a plan were likely moved to Standard Repayment. Your new payment goes straight into your debt-to-income ratio. Depending on your loan program, the plan you pick can add, or subtract, tens of thousands of dollars from what you qualify for.

I've had some version of this conversation a lot this fall. Someone's ready to buy, the pre-approval looks great, and then the student loan servicer sends a new payment amount. Suddenly the numbers move.

So let's walk through what changed, how lenders actually count student loans, and what I'd do before you pick a plan.

What changed with SAVE

Standard Repayment ignores your income entirely. For a borrower who was paying $0 in SAVE forbearance, that can mean a payment of several hundred dollars a month, overnight.

Why your student loan payment matters so much to your mortgage

When I underwrite a loan, I'm looking at your debt-to-income ratio (DTI): your monthly debts divided by your gross monthly income. Most loan programs top out somewhere between the mid-40s and about 50%, sometimes higher with strong compensating factors.

At a 6.5% rate, every extra $100 a month in debt lowers the loan amount you qualify for by about $15,800. That's why a student loan payment change isn't just a budget issue. It's a buying-power issue.

How each loan program counts your student loans

This is where most online advice gets it wrong. Each program has its own rule, and the rule for a $0 or paused payment is where they differ most.

Guidelines change, and your file's details matter. Treat this table as the starting point for a conversation, not a final answer.

A real-world example: same borrower, very different results

Meet a hypothetical buyer: $60,000 in federal student loans, $85,000 in income, no dependents. The payments below are approximate.

While this borrower sat in SAVE forbearance, an FHA lender counted 0.5% of the balance: $300 a month. A Fannie Mae lender counted 1%: $600 a month.

Now watch what the plan choice does:

• FHA buyer who lands on Standard: the counted debt goes from $300 to $681. That's roughly $60,000 less buying power.
• Same FHA buyer who picks IBR instead: $300 goes to about $510. The hit shrinks to roughly $33,000.
• Conventional (Fannie) buyer who picks IBR: $600 drops to about $510. That can add around $14,000 in buying power.

Same person, same debt, and a swing of tens of thousands of dollars based on one decision. That's why I want you to call me before you choose.

RAP vs. IBR: which one wins?

RAP charges 1% to 10% of your adjusted gross income, depending on your income tier, with a $10 monthly minimum. It takes $50 a month off for each dependent. If you pay in full and on time and your payment doesn't cover the month's interest, the unpaid interest is waived. If your payment reduces principal by less than $50, the government matches up to $50. Any remaining balance is forgiven after 30 years of qualifying payments.

IBR generally charges 10% or 15% of your discretionary income, depending on when you borrowed.

In my experience, RAP tends to win at lower incomes and in bigger households. IBR tends to win for single borrowers with moderate-to-higher incomes. Run both in the Loan Simulator at studentaid.gov with your real numbers.

What I'd do this week

1. Log in at studentaid.gov and confirm which plan you're on and what your new payment is.
2. Run the Loan Simulator to compare RAP, IBR and Standard side by side.
3. Call your loan officer before you choose if you're buying or refinancing in the next 12 months. We'll show you what each plan does to your approval.
4. Get it in writing. Save your servicer's statement showing the new plan and payment. A documented payment is much easier to use than a guess.
5. Think twice before refinancing federal loans into a private loan just to lower the payment. You'd give up RAP's interest waiver, income-driven payments and forgiveness options.

Already own a home?

If your student loan payment just jumped, you may be tempted to roll the debt into your mortgage with a cash-out refinance. For some homeowners with solid equity, that lowers the monthly payment.

But it's a real tradeoff. You'd turn unsecured federal debt, with its income-based protections, into debt secured by your house. I'll walk you through both sides honestly, including when it doesn't make sense.

FAQ

Does my student loan payment count against my mortgage approval? Yes. Lenders include it in your debt-to-income ratio. How much they count depends on your loan program and whether you have a documented payment above $0.

What happens if I didn't choose a new plan before September 30? Most SAVE borrowers who didn't choose were placed on Standard Repayment. You can generally still apply for an income-driven plan like RAP or IBR through studentaid.gov.

Is RAP better than IBR for buying a house? It depends on your income and household size. RAP often wins at lower incomes and with dependents, and IBR often wins for single borrowers with higher incomes. Compare both before you choose.

How do FHA loans count student loans in 2026? FHA uses your actual monthly payment when it's above $0. If your payment is $0, deferred or in forbearance, FHA uses 0.5% of the outstanding balance.

Can I pay off student loans with a cash-out refinance? Often, yes. But you'd trade federal protections like income-driven payments and forgiveness for debt secured by your home. Talk it through with a mortgage advisor first.

Sources

• The College Investor: SAVE Plan Forbearance Ending
• The College Investor: How RAP Works
• Tate Law: Income-Driven Repayment and Mortgages
• Tate Law: FHA Student Loan Guidelines (2026)
• Federal Student Aid (studentaid.gov)

Disclaimer: This article is for educational purposes only. It isn't tax, legal or student loan advice, and it isn't a commitment to lend. Loan program guidelines change, and approval depends on your full financial picture. Example rates and payments are illustrative. Planted Local Lending, NMLS 2430855 · Trish Reedy, NMLS 304737 · Equal Housing Lender.