Advanced Learner Loans

If you’re thinking of starting a course you will qualify for an Advanced Learning Loan to help pay the tuition fees. Learners aged 19 and over, studying at Level 3 and above, will qualify for these new loans from the UK government. Your household income isn’t taken into account, there’s no credit check and you won’t have to pay anything back until your income is over £21,000 a year.

www.gov.uk have published a range of videos featuring the case studies of learners who have benefited from taking out an Advanced Learner Loan. The case studies show you how Advanced Learner Loans can improve your skills and career opportunities.

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
  • Studying with a college or training organisation in England approved for public funding
  • Enrolling on an eligible Level 3 course and above, such as: A levels, Diplomas and Certificates, Advanced Apprenticeships or Higher Apprenticeships

How much can I get?

The amount you can get depends on your course, the tuition fees charged and maximum amounts set by the Government. The minimum loan amount is £300. You can take out a loan for the maximum amount to cover your tuition fee or you can pay all or part of the tuition fee yourself.

How’s the loan paid?

Student Finance England (SFE) will pay your agreed tuition fees to the college once your attendance on the course has been confirmed.

Repayment

  • Your monthly repayments will be based on your income, not what you borrowed.
  • You’ll only start making repayments when your income is more than £404 per week, £1,750 per month or £21,000 per year.
  • You’ll only pay back 9% of any income above £21,000 a year, see the table below for examples of what you’ll repay:

Income each year before tax

Monthly salary

Monthly repayment

Up to £21,000

£1,750

£0

£22,000

£1,833

£7

£25,000

£2,083

£30

£30,000

£2,500

£67

£35,000

£2,917

£105

£40,000

£3,333

£142

So, if you’re paid monthly and earn £2,500 before tax you would repay 9% of the difference between what you earn and what the individual threshold is:

  • £2,500 - £1,750 = £750
  • 9% of £750 = £67.50

Your loan repayment would be £67 in that month.

  • If your income drops or rises, for example if you receive a bonus, your repayment amount will automatically change to reflect this. You can make voluntary repayments at any time to pay off your loan more quickly.
  • If you’re self-employed you’ll be responsible for making student loan repayments as part of your annual self-assessment tax return.
  • If you’re employed, you don’t need to doanything. Your employer will take your repayments directly off your salary as they do with tax and national insurance contributions.
  • If you stop working, your repayments will stop and only start again when your income is more than £21,000 a year.
  • You’ll be due to start repaying your loan in the April after you leave or finish your course – whichever comes first. If you leave or finish your course before April 2016, you won’t start making repayments until after this date.
  • Any loan remaining 30 years after you’re due to start making repayments will be wiped.


Last modified: Thursday, 1 September 2016, 4:20 PM