Are student loan interest rates fixed or variable?

Student loan interest rates in North Carolina are typically fixed. This means that the interest rate on a student loan remains the same over the entire life of the loan. Fixed interest rates are usually chosen by borrowers because they provide more budgeting and payment security from month to month. They also typically offer a lower rate than variable interest rate loans since the interest rate is agreed upon up front. If your student loan is a fixed rate loan, you will not be affected by any fluctuations in the market or by any changes to the federal interest rate. However, there are some student loan programs that offer variable interest rate loans. Variable interest rate loans typically start lower than fixed rate loans, but the interest rate can fluctuate over time. The rate is determined by the lender and is based on a market index. In North Carolina, these variable rate loans are tied to the LIBOR index. If the index increases, the interest rate of the loan will typically increase as well. It is important to be aware of the terms of a variable rate loan and to understand how the index and rate may change over time.

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Are student loan interest rates fixed or variable?

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