TABLE OF CONTENTS
Your Ultimate Guide to Using Prodigy Finance’s Loan Calculator for Students
Use Prodigy Finance's loan calculator to estimate your student loan repayments. Calculate loan amounts, interest rates, and repayment terms to plan for studying abroad with confidence.
TABLE OF CONTENTS
Prodigy Finance’s Education Loan Calculator helps students estimate their approximate monthly repayment amounts against their student loan.
By entering details such as the interest rate, loan amount, and loan term, students can understand their repayment options, which can be adjusted for personalised results.
The Education Loan Calculator can also help students compare different loan plans and make an informed decision when choosing a lender.
The Education Loan Calculator provided by Prodigy Finance can be a powerful tool in financial planning for students who wish to study abroad. This will help you work out how much you need to borrow and what your monthly payments might be. Use this student loan interest calculator to understand how much you're really paying for your education.
This guide to the study abroad loan calculator walks you through the process of using it step by step.
Steps to Use Prodigy Finance’s Education Calculator
You may access Prodigy Finance’s education loan calculator here. Once you land on the online tool, you will notice that it has a simple interface. It’s easy to use and has clear instructions and simple input fields. It’s a great tool for students who aren’t familiar with loan calculations and want to make informed decisions about their education funding. Here’s all that you need to know on how to use this calculator:
Step 1: Inputting the Key Information
To get your answers, you will need to enter some key information in the tools.
The first step is to input the loan amount you need. This should cover your total education costs, including tuition fees and living expenses. Students can input any value between $10000 to $220000 depending on their requirements. Prodigy Finance allows students to get funding for 100% of the cost of attendance, if required. The estimate of this amount may be taken directly from the university’s financial aid office. The amount is entered in USD for standardisation purposes.
Next, you will need to input the interest rate. Prodigy Finance’s Education Loan Calculator uses the APR (Annual Percentage Rate) instead of just the nominal interest rate. The APR provides a more comprehensive view of the loan's total cost because it includes both the interest rate and any associated fees (such as admin fees, which are 5% of the loan amount for Prodigy Finance). Students may use 13.38% representative APR for calculation bases.
Finally, you need to input the loan term. Prodigy Finance offers a repayment period of up to 20 years. This can vary and is a key factor in determining the monthly payment and total interest paid over the life of the loan. A shorter term such as 5 or 10 years, will have higher monthly payments but less total interest paid. A longer term like 15 or 20 years, will have lower monthly payments and can be more affordable in the short term. However, it means more interest paid as the loan accumulates interest over a longer duration.
Step 3: Analysing the Results
As you input the loan variables, the calculator will give you the total amount repayable, the admin fee and the amount you will pay in interest. Most importantly, it will show you how much you would have to pay monthly for the specified duration.
By reviewing these results, borrowers can better understand their financial commitments and make informed decisions about their education funding. The calculator’s breakdown of these components makes it easier to compare loan options and plan for future repayments.
Step 4: Adjusting Parameters
Before taking out an education loan, students may have quite a few doubts. By adjusting these parameters, you can explore different "what-if" scenarios:
What if I borrow less?
What if I choose a longer repayment period?
How will a different interest rate change my payments?
Suppose you're unsure whether you should borrow $30,000 or $40,000. With the calculator, you can input both amounts one at a time and see how they change your monthly payment and the total amount you'll repay.
As discussed above, how long you take to pay back the loan significantly impacts your monthly payments. In the calculator, you can adjust the repayment period, like choosing between 10, 15, or 20 years.
Interest rates can vary depending on the loan terms or market conditions. The calculator lets you input different interest rates to see how they affect your payments.
By testing these different scenarios, you can decide which one makes more sense for your budget.
Step 6: Making Final Decisions
When making your final loan decision, it's important to align everything with your financial goals. Think about your expected income after graduation, how much you can afford to pay each month, and any other financial commitments you might have. This way, you can choose a loan that not only supports your education but also fits into your long-term financial plan. With the insights you gain from using the calculator, you can start your educational journey confidently, knowing you have a manageable plan in place for repayment.
FAQs
Q. Is there a mobile app for Prodigy Finance?
Yes, Prodigy Finance has a mobile app available on iOS and Android that lets you access your loan details like statements and payment status in a glance. It also allows you to make payments and set up auto debit for future payments.
Q. Who can I contact if I have more questions about the loan calculator?
If you have additional questions about the Prodigy Finance Education Loan Calculator or their student loans in general, you can reach out to their team through email, phone, or chat for assistance.
Q. Are there any fees associated with using the Prodigy Finance Education Loan Calculator?
No, using the Prodigy Finance Education Loan Calculator is totally free.
Q. How do I determine the estimated loan amount I need to borrow?
The best way to calculate what you need is to consider the cost of attendance in full. From there, subtract any scholarships or grants you may receive from the school or the amount you could manage personally.
Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Prodigy Finance loans are offered to eligible borrowers and these loans are governed by English law.