How do you pay for new training or qualifications when you do not have any income? This is the question many career changers face and often struggle to answer. You may have a supportive partner or family member that can lend you money. If so, now may be the time to swallow your pride and ask for help. But if you don’t have anyone close to you who can help you out financially and if you don’t want to rely on credit to pay for a course where do you turn? How do you fund your retraining journey?
The Advanced Learner Loan may the solution you are looking for. What is it? The Advanced Learner Loan is a special loan to help adults manage the cost of pursuing new training and qualifications. The loan is available to anyone 19 years and over who is pursuing a level 3,4,5, or 6 qualification at an approved college of training provider in England. Not sure what level your course is? Check here to find out. Typically courses from level 3 – 6 cover A levels, general and vocational qualifications, and access to Higher Education Diplomas
Why is it different from a personal loan? Unlike a personal loan eligibility does not depend on your income or credit checks. You do not have to pay any of your loan back until you have started earning over £26,575 a year. And uniquely your repayments automatically stop if either you stop working or your income goes below the threshold. So, while the loans are not interest free, the fact that you only must pay them back once you are earning provides assurance a normal personal loan cannot match. There are some other major differences. You will not be paid the loan directly, instead payments will be made directly to your college or training provider. If your attendance stops, so do the payments and you will only be liable to repay the amount (and any accrued interest) that has already been paid to the course provider.
Who can apply?
Adults aged 19 or over must be living in the UK on the first day of their course, be a UK national or have settled status and have been living in the UK, Channel Islands or Isle of Man for 3 years before starting the course.
How much can you borrow?
This is less straight forward. The amount available depends upon the course you select and the fees charged by the course provider. You can then choose the amount you want to borrow up to the maximum available, this is then put towards your course fee. The minimum you can borrow is £300.
How to apply
Firstly, you need to obtain a learning and funding information letter from your course or training provider, this letter will provide the relevant details about your course that you need to complete the application. Once you have the letter complete the application online or by post, find out more about the application process here. Online applicants can expect to receive a letter confirming your loan within 2 weeks, postal applications will take longer.
However there are exceptions for people who are not UK nationals, find out if you are eligible by reviewing the list of exemptions here.
So, if you are facing an uncertain future at work or are already unemployed, do not let worries about financing retraining deter you. Take advantage of the Advanced Learner Loan and help kick start your new career.
