Students look set to see the interest rates they pay on loans drop from September.
For some students in England and Wales, it means the rate they are charged is likely to fall from 5.6% to 4.5%.
The amount you pay in interest is made up of Retail Price Index (RPI) measure of inflation plus a certain percentage, depending on when you started studying.
The government usually calculates student loan interest rates based on March’s RPI figure, which was published this month - but it doesn’t officially confirm rates until later this year.
Figures from last week showed RPI was 1.5% - down from the 2.6% recorded last March.
If the government follows previous patterns and uses this to calculate student loan interest rates, it means students in England and Wales will see rates fall from its current 5.6% figure to 4.5% in September.
These figures, first published by Money Saving Expert, are based on undergraduate students in Wales and England being charged the March figure of RPI plus 3% each year.
There is then a sliding scale after you graduate, based on how much you earn.
The Mirror has contacted the Department for Education for comment.
How interest rates on student loans could change
Again, this is dependent on the government following the same calculations as previous years.
Plan 2 loans: This applies to all students in England and Wales who started university from September 2012 onwards.
If you are still studying, the current rate looks set to fall from 5.6% to 4.5% - based on figures used that see you charged RPI plus 3%.
From the April after you graduate, the interest rate is RPI if you earn £27,295 or less - so it will drop from 2.6% to 1.5%.
For anyone earning between £27,295 to £49,130, the rate is again RPI plus up to 3% interest.
The goes back up to RPI plus 3% interest if you take home more than £49,130, so again looks set to drop from 5.6% to 4.5% from September.
Postgraduate loans: For those in England and Wales, you’re charged RPI plus 3%.
So again, this is set to drop from 5.6% to 4.5% from September.
Plan 1 and Plan 4 loans: This applies to all English and Welsh students who started their course between 1998 and 2011, Northern Irish undergrad and postgrad loans since 1998, and Scottish students, both undergrad and postgrad, who started university from September 1998 onwards.
These people are charged whichever is lower out of RPI or the Bank of England base rate plus 1%, with the current rate being 1.1% based on the base rate being at an historic low of 0.1%.
This is likely to stay the same unless the base rate increases.
Pre-1988 undergraduate loans: The rate here for students with a loan that pre-dates 1998 is calculated based on the RPI rate.
It is currently 2.6% and it is set to drop to 1.5% in September, if previous calculations used to create this figure are followed.
