New Loan feature - one funding account?
I have a bundle of 6 student loans and after I moved my first to the new loan tracking feature I realized you can't re-use a funding account for a new loan. The problem is my 6 loans are all one payment but they are listed as 6 different accounts on the lender side. So I only use one account to pay them off.
How can I fix this without adjusting my budget amounts or reversing the move to the new loan format?
Silver Keyboard Great question! We can definitely get this set up in your budget - but there's a bit of explanation, so I apologize in advance for the length of this 😅 Since a category can be paired with only one Loan account at a time, each of your student loans will have its own loan account and payment category - we’ll need to do that first! Here are the steps to get this set up:
- Create a Student Loans Category Group in your budget.
- Click "Add Account," then click "Unlinked."
- Select the Student Loan account type, and work through the steps to add a student loan account to YNAB. You may need to log into your lender’s website to gather the information you need about each account.
- When YNAB asks which category you’ll use for payments, create a new category and place it in the Student Loans Category Group.
- Repeat the "Add Account" process for each student loan.
I would recommend adding a Target to each student loan payment category to help you assign money for your payments each month!
Now, let's make the payment. Since you make one payment that your lender applies to multiple loans, you’ll need to record the payment as a split transaction in the account that made the payment (i.e. Checking). In the top line of the split transaction, enter the lender’s name as the Payee, and the total amount of your payment in the Outflow column.
For each line of the split, choose the Transfer Payee for the various Loan accounts. YNAB will automatically choose the payment category for each Loan! Enter the amount that was applied to the Loan in the Outflow column (you can also create a Scheduled Transaction so that you won’t have to re-create this split transaction each time you make a payment)!
I hope that helps you get things situated, but let us know what questions you have along the way!
I mean, I guess it saves work by not needing to input a few fields. However, what is the point of splitting it out in YNAB if the payment proportions will have to be babysat?
I know you said YNAB will calculate interest to within a dollar (again, that's a large margin of error for algebra!). I think that student loans that proportionally determine how the payment is assigned will be off even more.
Just why? It's a set of formulas. You just plug in variables. Why gloss over the math?
Silver Keyboard You can roll that account from a Loan account in YNAB back to a Tracking account.
First create the new Tracking account:
- Click Add Account and follow the steps to create a new Tracking account.
- When YNAB asks for the current balance, enter the balance of the Loan account.
After you’ve created the new account, you can close the Loan account:
- Hover over the account name and click the pencil icon when it appears.
- Click “Close account.”
Feedback on loan accounts should go straight to our product team.