How to Model Student Loans and Pay Them Off

In ProjectionLab, you can add your student loans, see when they’ll be paid off, and test how extra payments could get you there sooner.

Let’s say you have $30,000 in student loans at 6% APR, with a monthly payment of $333 over 10 years.

Add Your Student Loans

1. Click the pie chart icon on the left side of your screen to open Current Finances.
2. Click Unsecured Debts.
3. Click + Add Debt, then choose Student Loans.
4. Under Balance, enter how much you still owe, $30,000 in our example.
5. Under Annual Percentage Rate, enter your rate, 6% in our example.
6. Under Owner, choose who owes the loans.
7. Under Interest, choose Simple or Compound to match your loans. For compound interest, set how often it compounds under Compounding.
8. Under Monthly Payment, enter your payment, $333 in our example.

Years to pay off is calculated for you below these fields, 10 years in our example. Click the number to change it, and your monthly payment will adjust to match.

Review Your Student Loans in a Plan

Your student loans appear in each plan under Expenses, showing your monthly payment, balance, and APR. Click them to see these settings:

• Effective Date: when the debt goes into effect. For loans added in Current Finances, this is set to Before Current Year and can’t be changed.
• Payments Start: when payments begin. Leave it set to Before Current Year if you’re already making payments, or choose Now or a future month, such as when a deferment ends.
• Monthly Payment: your monthly payment. Click the three-dot menu to choose Actual Currency or Today’s Currency. In Today’s Currency, the payment starts at that amount, then stays fixed, since debt payments don’t usually rise with inflation.
• Years to Pay Off: your estimated payoff timeline based on your current terms.
• Advanced Options: toggle this on under More Options to see every setting, including Pay From. Leave Pay From set to Automatic, or choose Specific Account to make payments from a particular account.

Pay Off Your Loans Faster

In your plan, raise your Monthly Payment, or click Years to Pay Off and enter fewer years.

Let’s say you add $200 a month, for a total payment of $533. Your loans would be paid off in about five and a half years, roughly four and a half years sooner, and you’d save about $4,600 in interest.

You can also put a specific income toward your loans, such as a bonus or tax refund.

1. On the Plan tab, click + Add Income under Income and set up the income.
2. Under Send To, choose Specific Account.
3. In the dropdown to the right, check Student Loans. The income will be applied directly to your loan balance.
4. To make it a regular payment, toggle on Repeat under Recurrence.

Model Loan Forgiveness

Unlike other unsecured debts, student loans include a Loan Forgiveness option.

1. In your plan, click your student loans under Expenses.
2. Under More Options, toggle on Loan Forgiveness.
3. Under Forgive At, choose when your remaining balance is forgiven, such as 10 years after Now for Public Service Loan Forgiveness.
4. Click Save.