Before August 20, 2065438+2009, the benchmark interest rate of floating rate loans in China was the benchmark interest rate of central bank loans, and since August 20, new loans have been priced based on LPR. After the conversion of the pricing benchmark, many students who applied for student loans also received the notice of the conversion of the pricing benchmark of student-origin loans. What do you mean by conversion?

What does it mean to switch the pricing benchmark of student loans?

The conversion of the loan pricing benchmark of students' origin refers to the conversion of the loan interest rate pricing benchmark of students' origin loans originally priced with reference to the central bank's loan benchmark interest rate into a floating interest rate with a difference of 30 basis points from the latest market quotation (LPR) of the same grade released in February last year, or a fixed interest rate with a difference of 30 basis points.

To put it simply, the conversion of the pricing benchmark of student-origin loans means that the loan interest rate pricing benchmark of student-origin loans is changed from the central bank loan benchmark interest rate to LPR, and students who apply for student-origin loans need to choose between floating interest rate and fixed interest rate pricing. Fixed interest rate and floating interest rate are two pricing methods of loan interest rate. The loan interest rate determined by the fixed interest rate will remain unchanged throughout the loan period, while the loan interest rate priced by the floating interest rate will be adjusted with the change of the benchmark interest rate (LPR).

The difference between choosing a fixed interest rate and a floating interest rate is that:

1 If fixed interest rate is selected, students will pay interest at the interest rate agreed in the contract in the future until the contract expires.

2 If floating interest rate is selected, the loan interest rate will be recalculated according to the LPR interest rate of 65438+February -30 basis points in the year before the annual repricing date (the repricing period is usually 1 year). For example, in 2022, it is calculated according to the LPR interest rate of 202165438+February. Because the LPR interest rate will be reported once a month, after choosing the floating interest rate, the interest rate of student loans may change every year, but the downward adjustment of 30 basis points is fixed.

The above is the answer to the significance of the conversion of the pricing benchmark of student loans, and I hope it will help you.