LIBOR rates

[JKDS]

So, LIBOR.

Its this interest rate that banks use to trade with each other. And its also a number used to determine interest for mortgages and loans.

Right now, it seems like the LIBOR has been in a pretty bad place. If my understanding is right, it was at 7% in 2001, and has since plummeted to 1%, back up to 5%, and then sat at 0.2% for over 5 years.

So whats going on here? Is the LIBOR likely to stay this low? I've been googling, but I suck and cant find stuff. The above is the extent of my knowledge about it all.

I'm strongly considering a student loan from a bank or Discover, and they base their rates off of the LIBOR rate. It seems like I could get an interest rate far lower than what the Government's rate would be.

What am I missing?

[jackvance]

Don't take out a student loan man, you're digging your own grave. These things are also under such scrutiny right now that I expect something to be done about it in the future so I'd advise you to hold out on going there if at all possible.

But anyway, I don't think these rates are going to improve. They might even get worse. You might think that's not possible but it is. In some places in europe (swiss) they have even gone negative.

[spoonitnow]

+1 for being against student loans.

Whatever happened to starting a business?

[wufwugy]

you have to do student loans. they should be no problem paying back as long as you're not a tool with your money. so yeah, if you're a tool, no loans. otherwise, something as horrific sounding as 50k in debt at an early age is still a good decision if it raises overall income so that by mid-late age you're doing better than you would otherwise.

i know nothing about libor.

[BooG690]

i know nothing about libor.

or finances.

[wufwugy]

or finances.

well fucking okay then

[wufwugy]

nupe

[OngBonga]

Student loans here are interest free. What the hell has LIBOR got to do with student loans? They're charging you interest?

[BooG690]

~8% interest on student loans. Suckers.

[JKDS]

I already got a bunch of government loans for law school. If I get the job I want, the gov will pay $6k a year towards that, and will forgive it in 10 years. If I dont get that job, I'll likely make 80k/yr+, so I'm not expecting a huge issue.

I need slightly more though. My bar exam course expects 12hr study days, so a job dutring that period is gonna be difficult. A small private loan of $5k would help a lot, and the offer includes 6 months of deferred payments, at which point I either have a job or live in a box anyway. I also trust Discover not to screw me over.

What I'm trying to figure out is whether that trust is misplaced. This small loan would be paid off almost immediately upon getting a job, but I dont want to wake up in the interim and see that the interest rate has climbed to 18% somehow, feel me?