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24+ Advanced Learning Loans A briefing for learners. What this briefing covers. Background to 24+ Advanced Learning Loans Who is eligible? Key facts More on repayments A typical learner journey Useful links. Why the loans have been introduced.
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What this briefing covers • Background to 24+ Advanced Learning Loans • Who is eligible? • Key facts • More on repayments • A typical learner journey • Useful links
Why the loans have been introduced • Funding for advanced and higher level training for people aged 24 and over has changed • Courses at level 3 or level 4 are no longer funded by government grants • However, learners can take out a government-backed 24+ Advanced Learning Loan to cover the costs of course fees
Do learners have to take out a loan? • Learners aged 24 and over don’t have to take out a 24+ Advanced Learning Loan to fund their course • Other options could include using savings or getting a loan from elsewhere • It’s up to individual learners to decide on the best option for them, depending on their circumstances
Who is eligible? • Learners aged 24 and over at start of their course • Must be resident in the UK • Studying at Level 3 or 4: QCF Certificates & Diplomas, Access to HE, and A-levels • Not means-tested or subject to credit checks • Not based on what learners have achieved in school or on courses in the past (for the first loan)
Who is eligible? • You can have up to a maximum of four 24+ Advanced Learning Loans • You can take one loan out at a time for non-A Level courses • For A Levels it is different • You can apply for up to four loans to cover your A Level Programme • These can be taken out at the same time • You can then still be eligible for three more loans for non A Level courses • You must complete a separate application for each A Level loan
Key facts about the loan • It doesn’t have to be repaid until you earn more than £21,000 a year • It won’t affect your credit rating • Repayments are linked to how much you earn, not how much you borrow • There is no upper age limit • Loan paid directly to your college or training provider
Repayments • 9% of income above £21,000 – irrespective of the number and amount of loan(s) taken out • Interest rates are linked to inflation – a sliding scale of the Retail Price Index (RPI) for incomes of less than £21,000; up to RPI + 3% for incomes above £41,000. • Repayments taken directly from your wage in the same way as tax
Learner repayments (suspension, write-off) • Suspended if income falls below £21,000 – such as a career break or unemployment –and only starts again when you earn over £21,000 • Outstanding loan balances written off: • after 30 years • on death (no family liability) • If you undertake an Access to HE Diploma and then complete an HE qualification the outstanding balance may be written off
Additional learner support • £50 million bursary fund spread over two years (2013-14 and 2014-15) • Support for mature students with learning difficulties or disabilities • Help to meet costs such as childcare, travel, books and equipment • Writing off outstanding loan for Access to Higher Education Diploma courses on completion of subsequent HE course
Useful links nationalcareersservice.direct.gov.uk/advancedlearningloans gov.uk/advancedlearningloans For advice on taking out a loan and managing your finances: moneyadviceservice.org.uk
