Which term refers to the interest charged over the life of the loan above a safe level?

The term that refers to the interest charged over the life of the loan above a safe level is known as the high-cost threshold. This concept is crucial in understanding lending practices, especially when it comes to protecting borrowers from predatory lending.

The high-cost threshold identifies loans that carry excessively high-interest rates or fees, which may indicate the loan is not affordable or could lead to borrower distress. This term is used in the context of various laws and regulations designed to limit abusive lending practices and protect consumers from loans that might be detrimental to their financial well-being.

By establishing a high-cost threshold, regulators aim to ensure that borrowers are not subjected to interest rates and fees that are deemed excessive or unsafe. It serves as a measure for lenders to assess their loan products and helps to create a more equitable lending environment.

In contrast, terms like finance charge threshold and APR threshold do not specifically refer to the concept of loans being classified as high-cost based on excessive interest rates. A loan processing fee typically refers to a fee charged for processing the loan application, which is independent of the interest rate or overall cost of the loan.