Current Index Value Definition - Shmoop

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Current Index Value

  

If your massive student loans are variable rate loans, you may want to familiarize yourself with current index values. What you may not know is that the variable rate associated with your student loan can change drastically, because it's based on a specific index...so it's affected directly by the performance of that index.

So yeah...any change in the interest rates associated with that index are going to affect your monthly payment that’s already through the roof, and totally killing your vibe at brunch every Sunday.

In professional terms, current index values represent the current value of the index rate associated with variable rate loans. So if a variable rate loan has an indexed rate set by the interest rates of, for example, the commonly used mortgage index rates, the current index value is the current value of this rate.

Right now you may be thinking, "Hmm...maybe I’ll convert to a fixed rate student loan so I can safely bro out at brunch."

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