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Advanced Learner Loans

Aged 19 or over and thinking about further education?

An Advanced Learner Loan helps with the costs of further education courses.

Learners aged 19 and over and studying an approved learning aim at Levels 3, 4, 5 or 6 at an approved provider in England can apply for an Advanced Learner Loan.

Eligibility for the loan doesn’t depend on a learner’s income and there’s no credit checks. Interest is charged from the date the first payment is made to the learning provider.

The Advanced Learner loan, plus any interest, has to be paid back but not until the learner has finished or left their course and their income is over the repayment threshold.

If you want advice on managing your finances you can get impartial money advice from the Money Advice Service at moneyadviceservice.org.uk.

 

What's available?

The amount available depends on:

  • the course
  • the fees charged by the learning provider

The learner can choose the amount they want to borrow up to the maximum available. This is then put towards the fees charged by the learning provider. The minimum they can borrow is £300.

Learning providers may charge more than the maximum loan available. The learner will need to self-fund any difference between their loan and their course fee.

 

How many loans can I have?

Courses starting from 1 August 2016

Learners can normally apply for up to 4 loans and they can get more than one at the same time. They can apply for another loan to take the same level of a course, for example the same level qualification in History if they’ve already had a loan for the same level in Maths.

The student can only apply once for an Access to Higher Education course.

Courses starting before 1 August 2016

The learner can apply for up to 4 loans but they can only get one loan at a time. They would have to be over the age of 24 and studying level 3, 4, Access to HE or A Levels.

The learner can’t apply for another loan to take the same level of a course, for example the same level qualification in French if they’ve already had a loan for the same level in Italian.

 

Advanced Learner Loan Bursary Fund, what is it?

Learners can also apply to get money from the Loan Bursary Fund after they’ve received a letter approving their Advanced Learner Loan.

The money can help pay for things such as:

  • accommodation and travel
  • course materials and equipment
  • childcare
  • classroom assistance for a disability or learning difficulty

 

Do I qualify?

Whether a learner can qualify for an Advanced Learner Loan depends on their:

  • course information including what they're studying and where
  • age
  • nationality and residency status
  • previous study

 

Course Information

If the course started on or after 1 August 2016

The learner must be 19 or older on the first day of their course.

The course must be:

If the course started before 1 August 2016

The learner must be 24 or older on the first day of the course.

The course must be:

Advanced Learner Loans are not available for Higher National Qualification (HND) courses or Advanced/Higher Apprenticeships, where other funding applies.

The course must be at least 2 weeks to be eligible for funding, but there's no maximum time limit in which a learner has to complete their course. However, there are maximum limits on how long we can pay a loan for. After this the learner will be due to start repaying their loan from, the following tax year if their income is above the repayment threshold of £25,000 from April 2018).

 

Nationality and Residency Status

Learners must usually:

  • be living in the UK on the first day of their course
  • have been ordinarily resident in the UK, the Channel Islands or the Isle of Man for 3 years before starting their course
  • be a UK national or have ‘settled status’
    (this means there are no restrictions on how long they can stay)

 

Previous Study

Learners can usually get a maximum of four Advanced Learner Loans.

The exception to this is if they're studying an AS or A level where they can apply for up to eight Loans, and can still get a further three loans for courses that are not AS/A Levels. Previous educational study will not affect a learner’s entitlement to their first FE loan.

They'll be able to get up to four loans for the same type of Vocational Qualification. However, they'll still only be entitled to one FE loan for a Programme for A Levels or Access to HE Diploma.

 

For further information on eligibility for the Advanced Learner Loans, please visit the Student Finance England Eligibility Page.

Alternatively, you can make use of the Advanced Learner Loans Eligibility Tool here

 

How is the loan paid?

Payments are made directly to the learning provider each month.

The learner's attendance must be confirmed before any payments will be made.

Confirmation of attendance

Confirmation of attendance will be required two weeks after they have started their course and every three months thereafter.

If a learner stops attending their course

If they stop attending at any point, the learning provider should let us know as soon as possible so we can stop further payments.

 

Repayment

Repaying your Advanced Learner Loan is straightforward.

Your employer will take repayments from your salary during any pay period where your earnings before tax are over the weekly or monthly threshold.

By pay period, we mean each time you receive your salary. This could be every:

  • Week
  • Four weeks
  • Calendar month

The earnings threshold is:

  • £480 a week
  • £2,083 a month
  • £25,000 a year

You pay 9% of your income over the threshold

 

Annual income before tax       

Monthly salary      

Monthly repayment     

Up to £25,000

£2,083

£0

£27,000

£2,250 £15

£30,000

£2,500 £37

£35,000

£2,916 £74

£40,000

£3,333 £112

 

So... 

if you’re paid monthly and earn £2,500 before tax you would repay 9% of the difference between what you earn and what the individual threshold is: £2,500 - £2,083 = £417 -> 9% of £417 = £37.53 -> {ROUND DOWN} -> £37.

Your loan repayment would be £37 in that month. If your income drops or rises, for example if you receive a bonus, your repayment amount will automatically change to reflect this.

You can make voluntary repayments at any time to pay off your loan more quickly.

  • If you’re self-employed you’ll be responsible for making loan repayments as part of your annual self-assessment tax return
  • If you’re employed, you don’t need to do anything. Your employer will take your repayments directly off your salary as they do with tax and national insurance contributions
  • If your income falls below £25,000 a year, your repayments will stop and will only restart once your income is more than £25,000 a year again
  • You’ll be due to start repaying your loan in the April after you leave or finish your course – whichever comes first. You can make voluntary repayments at any time.
  • Any loan remaining 30 years after you’re due to start making repayments will be written off.

 

Interest on your repayment 

You‘re charged interest from the day your first payment is made until your loan is repaid in full. Interest is added to the total amount you owe every month.

The interest rate is based on the UK Retail Price Index (RPI) and will vary depending on your circumstances.

The interest rate is updated once a year in September, using the RPI from March of that year.

RPI - The Retail Price Index, RPI, is a measure of UK inflation. It measures changes to the cost of living in the UK. The UK government uses the rate of RPI for many purposes, including setting the interest rate charged on student loans.

Circumstances

Interest rate

Whilst studying and until the April after leaving the course RPI plus 3% (6.1%)
From 6 April after leaving your course until the loan is repaid in full

Variable rate dependent upon income.

RPI (3.1%) where income is £25,000 or less, rising on a sliding scale up to RPI plus 3% (6.1%) where income is £45,000 or more

If you don’t respond to our requests for information or evidence RPI plus 3%,(6.1%) irrespective of income, until we have all the information we need

 

For more information, visit the Student Finance England Advanced Learner Loan Repayments page. 

 

 

LD Training Loan Tuition Fees for the academic year 2018-2019

Fees to be published shortly... 

To find out further information or to apply, please visit our homepage or contact us on 0207 998 3655 / 0208 616 2234.

 

 

 

 

Useful Materials:

 

Frequently Asked Questions:

 

Key Facts:

 

Quick Guide to Repayments:

 

Terms and Conditions

 

How To Apply:

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