Before borrowing an obscene amount of money for school, I thought I’d ask for financial advice on the internet!
I'm borrowing a boatload of money (100,000+) for school that I plan to pay off in 13 years. My best options are a fixed 8.5% rate vs. a variable rate based on the 3-month LIBOR. Right now, that rate will come out to be around 6%. So the question is, over the next 13 years, will the LIBOR increase by more than 2.5%, and will it do so rapidly enough to make it cheaper to borrow on the 8.5% rate? Also, what is the highest the LIBOR could reasonably rise to? I welcome your educated guesses.