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College Loan Repayment Optimization Pt.1

  1. Jun 5, 2014 #1
    My Goal: to find what fraction of my monthly payment should go to each loan. The ideal outcome would be to pay the debt as fast as possible.
    I have several loans, but for now, I want to start with a simple exercise of one loan that accrues monthly interest and one fixed monthly payment for that loan.

    Please see attachment.

    At this point, if everything is correct, I'm not sure what to do with the plot of the Laplace Transform.
    I know that there is a point in time where the loan is payed off, but how can I figure that out from the plot in the s-plane.

    Attached Files:

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    Last edited: Jun 6, 2014
  2. jcsd
  3. Jun 5, 2014 #2

    Stephen Tashi

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    Your attachment doesn't work.
  4. Jun 6, 2014 #3


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    I think the attachment here refers to the sheet shown in the thumbnail. Try clicking on the thumbnail.
  5. Jun 13, 2014 #4


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    pay the most on the one with the highest interest, all others minimal until that one is paid, then shift the rest of the money to the remaining one with the highest interest....
  6. Jun 14, 2014 #5

    Stephen Tashi

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    A note on reality - student loans in the USA , "nelnet". I helped a friend by making payments on her students loans and found that mailing in the form they have for paying loans and designating what amount goes to each loan doesn't work. I desingated payments to pay off high interest loans. Instead they used the funds to make partial payments on several loans that had various interest rates.
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