Advanced learning loans
- Name of the instrument - Local language
- Advanced learning loans
- Name of the instrument - English translation
- Advanced learning loans
- Scheme ID
- 216
- Country
- United Kingdom
- Reporting year
- 2020
- Type of instrument
- Loan
- Sub-type of instrument
- Loan for HE expanded to adults
- Type of entry
- Single instrument
- Short description
Advanced learner loans are based on contracts between the Secretary of State for Education, acting through the Education and Skills Funding Agency, and education and training providers. The contract allows education and training providers to receive loans payments from the Student Loans Company on behalf of learners (if they are 19 years of age or older) and loans bursary payments from the Education and Skills Funding Agency. The Advanced Learning Loan Scheme is a scheme designed to help learners cover the cost of college or training courses. The course must meet the eligible Level 3 or 4 courses. Repayment depends on income. Learners make repayments at 9% of annual earnings above GBP 21 000 (approx. EUR 24 946). If annual earnings fall below GBP 21 000 (approx. EUR 24 946), repayments stop and only restart when earnings increase to more than GBP 21 000 (approx. EUR 24 946). There is no opportunity to re-use the loan.
- Level of operation
- Part of the country
- Name of a part of the country
- England
- Name of the region (for regional instruments)
- Not applicable
- Name of the sector (for sectoral instruments)
- Not applicable
- Relevance
- Key instrument
- Legal basis
- Further Education Loans Regulations 2012
- Objective(s) and target(s)
- The objectives of Adavnce adult loans are to: - Provide a source of finance for learners to pay for the course fees if they need to: - Increase the level of private investment in learning to replace funding previously provided by the government - Empower learners to become more informed customers, with the purchasing power to choose the course of the highest benefit to them - Encourage providers to become more responsive to learner needs and ensure high quality provision. - Improve learners' motivation to study and maintain or improve the proportion achieving their qualification.
- Year of implementation
- 2012
- Year of latest amendment
- 2016
- Operation/management
- Advanced learner loans are based on contracts between the Secretary of State for Education, acting through the Education and Skills Funding Agency and education and training providers. The contract allows education and training providers to receive loans payments from the Student Loans Company on behalf of learners and loans bursary payments from the Education and Skills Funding Agency. The ESFA publishes an Education and Skills Contract/Agreement which includes a loans facility for eligible loans providers. This facility enables providers to offer loan-funded provision to individuals and to receive payments from the Students Loans Company on behalf of individuals.
- Eligible group(s)
- Whether you qualify for an Advanced learner loan depends on your: age course college or training provider nationality or residency status. You must be 19 or older on the first day of your course. Your course must be: a Level 3, 4, 5 or 6 qualification, for example A Levels or graduate certificate at an approved college or training provider in England. You must: be living in the UK on the first day of your course be a UK national or have 'settled status' (this means there are no restrictions on how long you can stay) have been living in the UK, Channel Islands or Isle of Man for 3 years before starting your course.
- Group(s) with preferential treatment
- No preferential treatment
- Education and training eligible
- Courses which are eligible are as follows: - a number of A-levels/AS/A2 not greater than four - a Quality Assurance Agency (QAA) Access to HE Diploma - a Level 3 Certificate - a Level 3 Diploma - a Level 4 Certificate - a Level 4 Diploma
- Source of financing and collection mechanism
- Student Loans Company administers the loans and application process.
- Financing formula and allocation mechanisms
- Learners make repayments at 9% of annual earnings above GBP 21 000 (approx. EUR 24 946). If annual earnings fall below GBP 21 000, repayments stop and only restart when earnings increase to more than 21 000. Interest will be charged at the Retail Price Index (RPI) + 3% during the period of study, and up until the April after they leave the course. From this point interest is linked to earnings and will be: o RPI for those earning less than GBP 21 000 a year. On a sliding scale between RPI and RPI + 3% for earnings between GBP 21 000 and GBP 41 000 a year RPI + %nt for individuals earning more than GBP 41000. The Government has provided a budget for Loans of GBP 129 million in the 2013-14 financial year and GBP 398 million in the 2014-15 financial year
- Eligible costs
- Course fees.
- Volumes of funding
- 2019/20: GBP 117 700 000 (approx. EUR 138 177 976)2018/19: GBP 123 100 000 (approx. EUR 138 105 121)2017/18: GBP 126 700 000 (approx. EUR 14 3499 485)
- Beneficiaries/take up
- Data for all apprentices:2019/20: 57 500 2018/19: 60 800 2017/18: 63 300
- Organisation responsible for monitoring/evaluation
- Department of Business, Innovation & Skills
- Monitoring/evaluation reports available
- 1. Impact Evaluation of 24+ Advanced Learner Loans: Research Report; https://assets.publishing.service.gov.uk/government/uploads/system/uplo…; 2. Evaluating the Extension of Advanced Learner Loans: Research Report; https://assets.publishing.service.gov.uk/government/uploads/system/uplo…
- Most relevant webpage - in English
- https://www.gov.uk/advanced-learning-loans/overview
- Most relevant webpage - local language
- https://www.gov.uk/advanced-learning-loans/overview
- Recent changes
From the 2016/17 academic year, the Department for Education extended Advanced learner loans to the following groups of learners: - 19-23 year olds studying Level 3 or 4 qualifications (without impacting on access to grant funding for first full Level 3); and - those of all ages studying at Levels 5 and 6.
Recent changes in response to COVID-19
No changes
- Sources
- https://www.gov.uk/government/uploads/system/uploads/attachment_data/fi…
- Students Loans Company
- Uk Government
- UK Government
- Department for Business, Innovation & Skills
On this page:
- Short description
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Year of latest amendment
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
- Recent changes
- Sources