Interest rates are at record lows in 2022, dropping across the board for both fixed- and variable-rate loans. And variable interest rates are exactly what they sound like — these loans have interest rates that change based on interest rate indexes, like the LIBOR or prime rate, plus a margin. When that index rate increases, the amount of interest you owe increases, along with your payment.  On variable-rate loans, interest rates and payments change over time. So, it's important to remember that what goes up must come down, and vice versa. There's a chance that interest rates will increase before a long loan (like a student loan) is paid off, and your interest rate and payment may not always be as low as it is now.