Presentation informing learners about the 24+ advanced learning loans
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if you are aged 24 or over and want to study A levels, an Access to Higher Education Diploma, a level 3 or 4 Certificate or Diploma, or an Advanced or Higher Apprenticeship, you will need to pay your college or training organisation for the cost of your course. A new loan scheme has been introduced by the government to help learners. The 24+ Advanced Learning Loan is 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: • 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.
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Presentation informing learners about the 24+ advanced learning loans
- 1. 24+ Advanced Learning Loans A briefing for learners
- 2. What this briefing covers • Background to 24+ Advanced Learning Loans • Who is eligible? • Key facts • More on repayments • A typical learner journey • Useful links
- 3. 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
- 4. 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
- 5. 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)
- 6. • 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?
- 7. 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
- 8. 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
- 9. 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
- 10. 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
- 11. 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
- 12. Learner journey (step 1)
- 13. Learner journey (step 2)
- 14. Learner journey (step 3)
- 15. Learner journey (step 4a)
- 16. Learner journey (step 4b)
- 17. Learner journey (step 5)
- 18. Learner journey (step 6)
- 19. Learner journey (step 7)
- 20. Learner journey (step 8)
- 21. Learner journey (step 9)
- 22. Learner journey (step 10)
- 23. Useful links nationalcareersservice.direct.gov.uk/advancedlearni ngloans gov.uk/advancedlearningloans For advice on taking out a loan and managing your finances: moneyadviceservice.org.uk
Notes de l'éditeur
- Government investment in further education is being targeted so that value for money is maximised. Grant funding is being prioritised on those with the greatest need and this has resulted in a removal of eligibility for individuals aged 24 and over studying at Levels 3 and 4. However loans have been introduced to ensure that finance is available for those wanting to study.
- The 24+ Advanced Learning Loan enables learners to pay for their course upfront in a manageable way but there are other options.
- A learner can access up to four loans (although only one at a time), each for a different type of course or at a different level. A levels are different – learners can take four loans for four different A level type qualifications at the same type, plus three further loans for non-A level qualifications. No restriction on learner’s ability to take on subsequent loans for HE. For more info to support this and following slides, see Policy Overview and Frequently Asked Questions (Skills Funding Agency December 2012) http://readingroom.lsc.gov.uk/SFA/FINAL24+_Advanced_Learning_Loans_–_December_2012Policy_Overview_and_Frequently_Asked_Questions.pdf
- Real rates of interest on the loans will be lower than anything available from banks Where learners have taken out more than one loan, repayments will be amalgamated into a single monthly payment.
- Repayment amounts are 9% of annual income above the £21,000 threshold. So, if earning £25,000, repayment is 9% of £4,000 = £360. Divided by 12 gives £30 monthly payment. Illustrations of repayments are important when ensuring the understanding of learners. Helps reassures learners that Loan repayments will be manageable.
- Loans provide reassurance that repayments can accommodate changing circumstances and liability is not passed on to others. If you undertake an Access to HE Diploma and then complete an HE qualification the outstanding balance may be written off. To qualify for the write off you must have fully completed both courses. You do not need to take out a loan for the HE course, however it must be eligible for funding by Student Finance England. The HE course does not have to relate to the Access to HE course you complete.
- Ministerial statement (July 2012): New support measures for those taking out 24+ Advanced Learning Loans: http://www.parliament.uk/documents/commons-vote-office/July_2012/12-07-12/1-BIS-AdvancedLearningLoans.pdf
- The next 10 slides provide a simple overview of the loans process. Here, the individual looks into learning options via the National Careers Service website or National Apprenticeship Service website or through a face-to-face meeting with a college or training provider
- Individual receives a Learning and Funding Information Letter (formerly known as the C ourse Offer) from their chosen provider, detailing: Provider details (Name, UKPRN etc.) Course details (Learner Aim Reference, title, start/end dates etc.) Unique Learner Number Course cost details (fee, other costs) Maximum value of the loan
- Learner considers their options
- Individual completes the application process and submits this to the Student Loans Company – can be done online or via a paper application form
- Individual completes the application process and submits this to the Student Loans Company – can be done online or via a paper application form
- Individual receives confirmation from the Student Loans Company that their loan application has been approved
- Course commences – no need for learner to arrange payment of course fees as this is handled directly by the Student Loans Company
- Provider confirms learner’s continued attendance and receives monthly payments from the Student Loans Company. Provider notifies SLC of incorrect learner information or if learner withdraws or takes a break in learning
- Learner completes their course
- Once the learner is in work, earning more than £21,000 per annum (which is £404 a week or £1,750 a month), loan repayment commences Repayment is 9% of earnings above £21,000
- Repayment complete