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?