Education-related debt, such as a student loan, can be added to a client’s plan to reflect the outstanding balance, repayment terms, and ongoing impact on cash flow.
Once added, the loan can be reviewed within Year View to see how the scheduled payments affect the client’s annual expenses and overall debt position.
Add the Education Loan
From the client’s plan, select the (+) button in the lower-right corner of the screen.
Select Debts/Loans from the available options.
Select the Debt Option
On the Debts & Loans screen, select Debt to begin adding the education loan.
Enter the Loan Details
On the following screen, change the debt type to Loan and enter the applicable information, including:
- Loan amount
- Interest rate
- Whether the interest is tax deductible
- Payment amount and repayment terms
Review the information for accuracy, then save the loan to the client’s plan.
Review the Loan Payments in Year View
To see how the loan payments affect the client’s plan, open the Dashboard and select Year View.
Navigate to the Expenses tab to review the scheduled loan payments by year.
Review the Loan in Charts
The education loan can also be reviewed visually within Charts.
From the client’s plan, open Charts and select the applicable Debt chart. This view illustrates how the outstanding loan balance changes over time as payments are applied.
Use the chart to review:
- The loan balance at the beginning of the plan
- How quickly the balance decreases
- The projected payoff date
- Any remaining balance later in the plan
- How changes to the interest rate or payment terms affect repayment
The Debt chart provides a visual overview of the loan’s repayment schedule and can help demonstrate its long-term effect on the client’s financial plan.