Students in Scotland will see their debt levels reduced, as the country's Student Loan Company is planning to cut the interest it charges on borrowing.
The Press and Journal newspaper reported that the Student Loan Company is poised to announce that its interest rates will be cut by one per cent.
As a result, the interest rate for the year beginning at the end of August will be just 3.8 per cent.
According to the paper, this will save Scottish graduates a total of £20 million in loan repayments.
Local politician and former president of the National Union of Students, Richard Baker, explained that the move would be welcomed by graduates with large amounts of debt.
"The main reason that so many students are dropping out of our universities is because of the amount of debt they build up, and also the lack of money that they have to live on while they study," he said to the paper.
Recent research from the Association of Investment Companies found that worries about student debt were affecting the career choices of many graduates.
It suggested that 40 per cent of students thought they would look for a well-paid job, rather then their dream employment.
