Presentation informing learners about the 24+ advanced learning loans

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• Funding for advanced and higher level

training for people aged 24 and over has changed

• Courses at level 3 or level 4 and Advanced and Higher Apprenticeships 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 ages 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, A-levels and Advanced or Higher Apprenticeships

• 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)

• 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 6

Who is eligible?

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

7

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 (examples)

Annual income before tax Repayment amount

Up to £21,000 £0

£22,000 £7.50 per month

£25,000 £30 per month

£30,000 £67 per month

£35,000 £105 per month

£40,000 £142 per month

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

Learner journey (step 1)



Learner journey (step 4a)

Learner journey (step 4b)







Useful links

nationalcareersservice.direct.gov.uk/advancedlearningloans

gov.uk/advancedlearningloans

For advice on taking out a loan and managing your finances:

moneyadviceservice.org.uk