What is the Advanced Learner Loan?
The Advanced Learner Loan is an administration-funded loan to help the learners. It is very easy to apply and doesn’t include a credit check and take your personal household income into account.
The key Facts about the Loan
Refunds are linked to what you earn but not how much you borrowed.
You will start making refunds after finishing your course
If your earning is over £21,000 a year (which is £404 a week or £1,750 a month) then you don’t need to pay back anything but you can make unpaid 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.
You may qualify for the Advanced Learner Loan to pay the beauty and detox spa course tuition fees.
This scheme has been announced by the government to help learners to study for qualifications at Level 3 and above that will improve their self-employment ability and develop high-level skills and knowledge.
The accessibility of loans at Level 3 does not exchange an individual aged 19 to 23’s legal entitlement to full funding for a first full Level 3.
There are some key information and frequently asked questions from the learners in relation to the loan, eligibility and how it works.
Am I Eligible for this Facilities?
To be eligible for an Advanced Learner Loan you must be:
Aged 19 and over at the start of your course.
Studying the qualified course to Level 3, 4, 5 or 6 including QCF Certificates and Diplomas, Admission to Higher Education, A Levels (maximum of four), the advanced and Higher Apprenticeships.
A resident of the UK
When can I Apply?
Once you have received your ‘Learning and Funding Information Letter’ from the Academy you can apply for a learning loan. It will give you the course information you will need to apply for a learning loan.
Also, you need to be required to provide personal information.
For further information, you may visit the gov.uk website or you can contact Student Finance England online or by telephone on 0300 100 0607.
How do I Apply?
The easiest way is to apply via online or you can download an application form to complete and send to Student Finance England. It may take longer time.
Before applying for a loan you may request to seek advice from the following sources.
- The Money Advice Service
- National Careers Service
- FE Choices
How much can I Borrow?
The Skills Funding Agency polices the maximum amount of loan for each qualification it assets. But minimum you can borrow is £300.
In some cases, there may be a shortage which you will have to pay if the cost of the course beats the maximum loan amount.
This information you will get in 'Learning and Funding Information Letter'.
How many Loans can I Take Out?
You may take maximum four loans in total but one loan at one time.
Please note: One cannot repeat to take out one loan for a similar course at the same level.
How do I repay the Advanced Learner Loan?
Until you are earning over £21,000 a year you won’t have to pay anything back and the loan will be written off after 30 years. The students’ loans company will set the interest rate. The rate will be lower than anything available from the high street.
Learners who take out an Advanced Learner Loan for an Admission to HE course can get the balance of the Advanced Learner Loan after completing the chosen access course and approved the Higher Education course.
For further information please visit the site at studentloanrepayment.co.uk.
How much will my refunds be?
Over the £21,000 threshold the refunds will be 9% of your income. If your income is £25,000 a year then your loan refunds would be around £360 a year (or £30 a month).
Income each year before tax
Up to £21,000
For Further information, you may visit in the Government Website https://www.gov.uk/guidance/24-advanced-learning-loans-an-overview