<prompt> Human: Hi PF. I have a couple of loans that I have to pay back for school. I wanted to try the snowball method on my smallest loan just so I could get it out of the way. Ill use examples to make it easier.Loan A: 1,500 5 fixed interest Loan B: 3,000 6.8 variable interestMy question is if I pay off Loan A, will the bank for Loan B notice that and increase the interest rate for Loan B? Or is it a completely different factor that affects the variable interest rate for B? edit: Thanks for the responses! I now understand the factors behind the variable interest rate.  <response>: Variable rates are often determined by a fixed amount plus the LIBOR rate. There are some others used as well. But they only way to know how yours is determined is to read the contract. 