• Student Loans
    • Undergraduate
    • Graduate
    • Parent Loans
    • Tennessee Lending Program for Teachers and Nurses
    • Eligibility Requirements
    • FAQs
  • Refinance Student Loans
    • Student Loan Refinancing
    • Parent Loans
    • Benefits & Savings
    • Eligibility Requirements
    • FAQs
    • Referral Program
  • For Business
    • CARES Act Details
  • About
  • Resources
    • Private Student Loan Calculator
    • Student Loan Refinance Calculator
    • Blog
    • Reviews
    • Press

Rates starting at: Variable 5.28% APR | Fixed 5.48% APR*

  • 1-844-601-ELFI

  • Log In
Education Loan Finance
  • Student Loans
    • Undergraduate
    • Graduate
    • Parent Loans
    • Tennessee Lending Program for Teachers and Nurses
    • Eligibility Requirements
    • FAQs
  • Refinance Student Loans
    • Student Loan Refinancing
    • Parent Loans
    • Benefits & Savings
    • Eligibility Requirements
    • FAQs
    • Referral Program
  • For Business
    • CARES Act Details
  • About
  • Resources
    • Private Student Loan Calculator
    • Student Loan Refinance Calculator
    • Blog
    • Reviews
    • Press
Find My Rate

Find My Rate

Categories

Personal Finance

Current LIBOR Rate Update: June 2021

June 15, 2021

Last Updated on January 7, 2022

Please Note: New variable rate ELFI loans applied for after 7:00 PM EST on January 7, 2022, will use the Prime Rate of Interest appearing in the Money Market section of the Wall Street Journal (WSJ) as the benchmark rate index. Borrowers who have an existing variable rate ELFI loan(s) that use the London Interbank Offered Rate (LIBOR) as the benchmark rate index will continue to have LIBOR as the benchmark rate index on their loans. ELFI will notify borrowers with existing variable rate loans originated prior to 7:00 PM EST on January 7, 2022, of the expected change from LIBOR to an alternative benchmark rate index in the future.

 

This blog provides the most current LIBOR rate data as of June 2021, along with a brief overview of the meaning of LIBOR and how it applies to variable-rate student loans. For more information on how LIBOR affects variable rate loans, read our blog, LIBOR: What It Means for Student Loans.

 

What is LIBOR?

The London Interbank Offered Rate (LIBOR) is a money market interest rate that is considered to be the standard in the interbank Eurodollar market. In short, it is the rate at which international banks are willing to offer Eurodollar deposits to one another. Many variable rate loans and lines of credit, such as mortgages, credit cards, and student loans, base their interest rates on the LIBOR rate.

 

How LIBOR Affects Variable Rate Student Loans

If you have variable-rate student loans, changes to the LIBOR impact the interest rate you’ll pay on the loan throughout your repayment. Private student loans, including refinanced student loans, have interest rates that are tied to an index, such as LIBOR. But that’s not the rate you’ll pay. The lender also adds a margin that is based on your credit – the better your credit, the lower the margin. By adding the LIBOR rate to the margin along with any other fees or charges that may be included, you can determine your annual percentage rate (APR), which is the full cost a lender charges you per year for funds expressed as a percentage. Your APR is the actual amount you pay.

 

LIBOR Maturities

There are seven different maturities for LIBOR, including overnight, one week, one month, two months, three months, six months, and twelve months. The most commonly quoted rate is the three-month U.S. dollar rate. Some student loan companies, including ELFI, adjust their interest rates every quarter based on the three-month LIBOR rate.

 

Current 1 Month LIBOR Rate – June 2021

As of June 2021, the 1 month LIBOR rate is 0.07%. If the lender sets their margin at 3%, your new rate would be 3.07% (0.07% + 3.00%=3.07%). 

 

Current 3 Month LIBOR Rate – June 2021

As of June 2021, the 3 month LIBOR rate is 0.13%. If the lender sets their margin at 3%, your new rate would be 3.13% (0.13% + 3.00%=3.13%). 

 

Current 6 Month LIBOR Rate – June 2021

As of June 2021, the 6 month LIBOR rate is 0.15%. If the lender sets their margin at 3%, your new rate would be 3.15% (0.15% + 3.00%=3.15%). 

 

Current 1 Year LIBOR Rate – June 2021

As of June 2021, the 1 year LIBOR rate is 0.24%. If the lender sets their margin at 3%, your new rate would be 3.24% (0.24% + 3.00%=3.24%). 

 

Understanding LIBOR

If you are planning to refinance your student loans or take out a personal loan or line of credit, understanding how the LIBOR rate works can help you choose between a fixed or variable-rate loan. Keep in mind that ELFI has some of the lowest student loan refinancing rates available, and you can prequalify in minutes without affecting your credit score.* Keep up with the ELFI blog for monthly updates on the current 1 month, 3 month, 6 month, and 1 year LIBOR rate data.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Login
  • Press
  • Careers
  • Referral Program
  • Corporate Site
  • About Us
    • Contact Us
      • answers@elfi.com
      • 1-844-601-ELFI
  • Legal
    • Privacy Policy
    • USA Patriot Act
    • Refinancing Terms & Conditions
    • Private Student Loan Terms & Conditions
    • TNLP Terms & Conditions
Education Loan Finance

© 2015-2021 Education Loan Finance from SouthEast Bank®. 12700 Kingston Pike, Farragut, TN 37934. All rights reserved. Subject to credit approval. See Terms and Conditions.

  • Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Pinterest
FDIC Logo
Note: Links to other websites are provided as a convenience only. A link does not imply SouthEast Bank’s sponsorship or approval of any other site. SouthEast Bank does not control the content of these sites.

*Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 10-13-2023. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.