Have you heard about the Advanced Learner Loan?
If you are aged 19 or over and want to study a course at level 3 or above, you will need to pay your college or training organisation for the cost of your course. The Advanced Learner Loan is a way of borrowing money to pay for your course. It’s easy to apply for, doesn’t take your household income into account and doesn’t involve a credit check.
Here are some of the key facts about the loan:
- Loans are available for most courses at Level 3 and above with £300 being the minimum loan you can get.
- Repayments are linked to what you earn and not how much you borrowed.
- You only have to start making repayments when you’ve finished your course and you’re earning
over £21,000 a year (which is £404 a week or £1,750 a month). Until then you don’t need to pay
back anything, but you can make voluntary repayments at any time.
- You pay 9% of the money you earn over £21,000, before tax. For example, if you earn £22,000
a year, your monthly repayment will be £7 a month; and if you earn £35,000 a year, it will be
£105 per month.
- Interest is charged on a sliding scale between the Retail Price Index (RPI) and RPI +3%,
depending on how much you earn.
- Repayments do not start until the April following the completion of your course.
You may also be eligible for help with travel or childcare costs from the Advanced Learner Loan Bursary Fund. You need to apply to your college or training provider directly for the Bursary Fund. You can apply as soon as you’ve received a letter confirming you Advanced Learner Loan. In most cases you don’t have to pay back money from the Bursary Fund.
To qualify you must be:
- aged 19 or over on the first day of your course (there’s no upper age-limit)
- living in the UK on the first day of your course and have lived in the UK, the Channel Islands or the Isle of Man for three years immediately before this unless you meet one of the exceptions detailed in the ‘Frequently Asked Questions’ (FAQs) available from Skills & Learning Centres
- studying with a college or training organisation in England approved for public funding
- enrolling on an eligible course at Level 3 and above.
Please note: these loans do not cover Degrees or other forms of Higher Education (HE). For information on funding for HE go to: gov.uk/studentfinance.
For more information, contact us on 01202 262300 or visit: www.gov.uk/advanced-learner-loan for more information about Advanced Learner Loans.