Rate Index

Categories: Loan and Mortgage,

Usually a commonly published rate, such as the prime rate, LIBOR, or Treasury Rate. student loan interest rates are often expressed as a rate index plus an additional interest rate spread or margin. Note that there are variations on these common rate indices. Read loan details and the promissory note carefully to identify the Rate Index (if any) that is used to calculate interest on your loan. See also interest rate, prime rate and LIBOR.