Have you heard about the Advanced Learner Loan?
If you’re aged 19 or over and want to study A Levels, an Access to Higher Education Diploma, or a Level 3 to 6 (Level 3 or 4 only if your course begins before 1 August 2016) Vocational Qualification, you’ll need to pay your college or training organisation for the cost of your course.
The Advanced Learner Loan is a government-funded loan to help learners. It’s easy to apply for, doesn’t take your household income into account and doesn’t involve a credit check.
Here are some 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.
- When applying for an Advanced Learning Loan, there is no credit check and household income isn’t taken into account.
- If you want to make voluntary repayments, you can do so at any time.
- Loan repayments will be taken directly from your wage through the tax system.
- You may be able to get financial support for living expenses, this depends on where you live and your household income.
- 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.