Prime Rate and Student Loans
The Prime Interest Rate is an index used in the United States to set rates for a variety of financial products such as credit cards, student loans, mortgages and more. Some lenders maintain their own version of the prime rate, but most banks use the the Wall Street Journal Prime Rate, which is widely considered the industry standard.
How is the Prime Rate calculated?
The Wall Street Journal Prime Rate is based on the fed funds rate and the average prime rates of the top banks in America. The prime can change at any time, but is mostly likely to rise or fall as a result of Federal Reserve monetary policy meetings. These meetings occur about every 6 weeks, or 8 times a year.
What is the current prime interest rate?
You may use the widget below (courtesy of WolframAlpha), for the most up-to-date figures.
How can I secure a low interest rate?
Your interest rate for an student loan is predicated on your credit score and credit history, or if you have found a creditworthy Cosigner. A Cosigner could be a parent, family member or even an ordinary friend -- they just need to have clean and established credit.
Click for more information on the Libor Rate.