Students are apparently being driven towards high street finances to fund their studies, as the cost of student loans are continue to remain high.

With the Bank of England’s biggest cut in interest rates, for more than 50 years, home owners and borrowers will be among those who benefit the most; however students may face negative effects on their finances with the drop in interest.

The National Union of Students stated that the average student debt would be around £30,000, however as, Sarah Toledo, FXU Welfare President at the Falmouth and Exeter’s Student Union explains: "The base rate cut will not affect student loans, as the student interest rate is set annually by the (SLC) and will stay at the same rate all year." Meaning that students will not benefit from the rate cuts.

The Student Loan Company bases the interest rates they charge to students on a measure of inflation known as the Retail Prices Index (RPI). The government claim that the amount students repay to the SLC will be about the same (in real terms) as the amount students borrow, claiming that "No-one makes a profit on the loan."

A spokesman for the Student Loan Company added that: "The interest rate is announced once a year - usually August - and applies from 1 September to 31 August the following year. The interest rate is linked to the rate of inflation, in line with the Retail Prices Index.”