LIBOR is commonly used as the floating rate for interest rate swaps, future contracts, mortgages, student loans, and even corporate funding. LIBOR is also used for setting the settlement prices for Fixed or variable interest rates: Private student loans come with two types of interest: fixed or variable. Fixed interest rates remain the same from month to month. They're fixed, and do not change for the length of the loan. Variable interest rates can change from month to month. Sometime after 2021, LIBOR is expected to be discontinued. This change will affect some adjustable (or variable) rate loans and lines of credit like adjustable-rate mortgages (ARMs), reverse mortgages, home equity lines of credit, credit cards, auto loans, student loans, and any other personal loans that use LIBOR as the index.