Graduates could soon benefit from a reduction in the interest rates on student loans, a national student body has revealed.
Earlier this week the National Union of Students (NUS) said that student loan interest, which is linked to the Bank of England (BoE) base rate, could be cut from the current 3.8 per cent.
Any reductions in the BoE base rate are decided by banks Monetary Policy Committee (MPC).
The MPC slashed the base rate again last week to just two per cent and the NUS has suggested that if banks reduce their rates in line with the cut then graduates can expect a reduction to their monthly repayments .
Unfortunately for students, the Student Loans Company adjusts its rate just once per year, meaning any drop in interest would not come into effect until September 2009.




