What is LIBOR?

“LIBOR” stands for London Interbank Offered Rate. LIBOR is a benchmark rate that some of the world’s leading banks charge each other for short-term loans and is among the most common interest rate indices used to make adjustments to variable rate consumer loans.

LIBOR is being phased out and will eventually be unavailable for use with any consumer loan products. As a result, we’re working diligently to implement a replacement index.

New variable rate Ascent loans applied for on or after January 1, 2022, will use the Secured Overnight Financing Rate (SOFR) as the benchmark index, which will be reflected in your loan documents.

Existing variable rate Ascent loans that use LIBOR as the benchmark index will continue to use LIBOR until we convert these loans to a replacement index, likely SOFR, at some point in 2022.  We will keep you updated with important information about this conversion.

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