Based on the current decline in weekly dividend the loan will indeed be paid off. The network seems to be increasing at about 11% every week on average. This means that every week the dividend will be adjusted by a factor of 0.9 (1/1.11) and also the amount paid to the loan will by adjusted by a factor of 0.9.
Wrong. You forget that hosting fees do not drop with difficulty and therefore dividends will drop a lot faster than difficulty grows (and reach zero in just a few months).