If you’re a learner aged 19 or over, you may well be entitled to apply for a loan scheme which has been introduced by the government to help people pay for their further learning.
Called the Advanced Learner Loan, it’s simple to apply for, there’s no credit check needed, and it isn’t dependent upon your household income. The loan has been brought in to help those who are not eligible for a government funded Apprenticeship and therefore need to self-fund the cost of their course.
Here’s what you need to know about repaying your loan
- You don’t have to start making your repayments until you’ve finished your course and your annual salary is £25,000 or more (equivalent to £2,083 a month or £481 a week). You can, however, choose to make voluntary repayments at any time.
- Once you’re earning over £25,000 gross (before tax) you will have to repay 9% of the money you earn. So, if you earn £27,000 a year, your monthly repayment would be £15 a month, and if you earn £30,000 a year, it would be £37 per month.
- The amount of interest you will be charged depends on how much you earn; it is based on a sliding scale between the Retail Price Index (RPI) and RPI +3%.
To qualify for the loan, you must be:
- Aged 19 or over on the first day of your course - there is no upper age limit
- Planning to study a Level 3, 4, 5 or Level 6 course from the advanced learner loan qualifications catalogue
- Living in UK on the first day of your course and must have been living in the UK, Channel Islands or Isle of Man for three years immediately beforehand, although there are some exceptions so it’s worth checking.
If you are considering taking out this loan, or any other loan, it’s important to carefully consider your options and, if you’re unsure, take advice. You can get free, impartial financial advice from the Money Advice Service.
There’s more detailed information on the GOV.UK website.
To find out how much you would pay back each month based on your annual salary, you can use this handy Repayment Calculator.
How to apply
Before applying you will need to ensure you have a Learning and Funding Information Letter from Connect2Care. Contact us now to discuss your options with a local Connect2Care representative.
Once you have the letter visit GOV.UK to apply for an Advanced Learner Loan.