24+ Advanced Learning Loans Chris Snowdon

Presentation Agenda Introduction Background Rationale Product overview Information, advice and guidance (IAG) Repayment Questions

Background, Rationale and Product Overview

Background Following the New Challenges, New Chances consultation, the Government confirmed in the Further Education and Skills System Reform Plan published on 1 December 2011 that loans for Further Education will be introduced from academic year (AY) 2013/14. These loans will give learners, aged 24 years and over, access to financial support for tuition fees, similar to Higher Education (HE). The Government will continue to grant fund courses for younger learners (those aged 23 and under) and individuals with skills needs below Level 3. 24+ Advanced Learning Loans will be assessed, processed and administered by Student Finance England. Student Finance England is a Student Loans Company service, providing financial support to students on behalf of the UK Government.

Rationale To help individuals aged 24 and over undertake Level 3 and above courses Give a genuine choice to both learners and employers about how and where learning is carried out Support the progression from FE to HE Support the progression from Advanced Apprenticeships to Higher Level Apprenticeships

Product Overview Product name 24+ Advanced Learning Loan Launched April 8th 2013 Cohort Learners commencing study in AY 2013/14 (when first day of study is between 1 August 2013 and 31 July 2014) Domiciles Available to all (as long as learners are studying at approved training organisations in England) Intensity of study Available to all learners regardless of intensity of study. There’s no distinction between full-time or part-time. There is a maximum study period (see later).

Product Overview Eligible college and training organisations Training organisations based in England who have been approved for public funding will be eligible to offer learners 24+ Advanced Learning Loans. Approval will be determined by a selection process by the Skills Funding Agency. Approved training organisations recorded on the Register of Training Organisations (TOR).

Product Overview Learner eligibility aged 24 or over on the first day of their course resident in the UK (nationality and residency criteria as per HE) able to provide their National Insurance number which will be verified with DWP studying an approved course with an approved college or training organisation not previously received a loan for the same type of qualification at the same level and, not exceeded maximum number of loans Loans are non means tested. Individuals can apply regardless of employment status.

Product Overview Course eligibility Programme of A levels (up to four and any combination of AS, A2 or A levels) Access to HE Diploma Levels 3-4 Certificates Levels 3-4 Diplomas Advanced Apprenticeships Higher Apprenticeships All eligible qualifications and or Apprenticeships frameworks must be approved for public funding by the Skills Funding Agency and listed on the Learning Aims Reference Application (LARA). Student Finance England will access this database when assessing applications. Maximum period allowed for study for example, Level 3 Diploma - three years

Policy Overview Loan available Loan amount available will be capped at the Agency’s published funding rate. Amount of loan required can vary depending on the amount charged and whether the learner is going to fund themselves. For Apprenticeships, 50% of the published rate as it is assumed the employer will contribute 50%. Learners can only apply for one loan at any time. They can be studying and funding themselves. There’s no progression rules. Loans will not be restricted on basis of prior attainment. If individual is already qualified at Level 3 or higher this will not prevent them from receiving a FE loan.

Product Overview Attendance and loan payments Learner will apply for a loan. Information they will need to get from their training organisation. Learner and training organisation will be informed when an application has been approved. Once the learner has started the course, the training organisation will have to confirm attendance via an online portal. (This will be after two weeks of the study start date and this will be the first liability point.) Student Finance England will pay the loan directly to the training organisation. Quarterly attendance confirmation will trigger the next three months payments. Training organisations will also be required to advise non attendance.

Repayment

Product Overview Repayment Learners will repay their loans on the same income contingent basis as HE. Learners start to repay once earning over £21,000. Repayments will be automatically deducted from earnings through the tax system. Learners are due to start repaying their loan in the April after they finish or leave their course – whichever comes first. If they finish or leave their course before April 2016, they won’t start making repayments until after this date. Repayments will be made at 9% of earnings above £21,000. If earnings drop below £21,000 repayments will stop. No role for training organisations in repayment process.

24+ Income each year before tax Income from which 9% will be deducted Approximate Monthly Repayment £21,000 £0 £25,000 £4,000 £30 £30,000 £9,000 £67 £35,000 £14,000 £105 £40,000 £19,000 £142 £45,000 £24,000 £180 £50,000 £29,000 £217 £60,000 £39,000 £292 24+ Any outstanding loan balance will be cleared 30 years after entering repayment.

24+ No penalties will be placed on students making early repayments. There will be a variation in the interest rate attached to a student’s loan during study and after leaving or completing their course: During study until entering repayment Interest rate is: Retail Price Index (RPI) +3% Earnings: Below £21,000 Interest rate is: Set at RPI Only Earnings Between: £21,000 - £41,000 RPI plus some amount between 0% and 3% The interest rate is updated once a year in September, using the rate of RPI from March. RPI as of March 2012 was 3.6% so it is likely new students will be charged 6.6% while studying!! Part Time RPI While studying on a course until whichever comes first of: The April after graduating or leaving a course; or The April after the fourth anniversary of the start of a course - RPI + 3% From the April after you have graduated or left a course, or after the fourth anniversary of the start of a course, but before April 2016 - RPI Earnings: Above £41,000 Interest rate is: Retail Price Index (RPI) +3% 24+ No penalties will be placed on students making early repayments.

www.studentloanrepayment.co.uk 24+

Information, Advice and Guidance

Information, Advice and Guidance Loans in further education are new to the sector and new to SLC. Communication and engagement are critical to success. SLC have been working with Business Innovation and Skills (BIS) and the Skills Funding Agency (SFA) to develop plans and create literature. Where to find information: www.practitioners.slc.co.uk/further-education.aspx www.gov.uk/24_advanced_learning_loans

Information, Advice and Guidance Available Now: Learner fact sheet (Money Advisory Service website given) Learner frequently asked questions Learner journey storyboards- Print and Video Posters Lines to use when talking to employers Guide to creating your own communications Quick Guide on how to Apply All resources are available to download only. They are not available to order.

Resources at: www.practitioners.slc.co.uk 24+

Resources and Guides Available Now: Key Information Fact Sheet Frequently Asked Questions Information for colleges and training organisations to use if working with employers Learner Journey Storyboards

More Information: skillsfundingagency.bis.gov.uk 24+

24+ Site for Operational Staff: lpservices.slc.co.uk

24+ SLC Key Contacts Student Finance Adviser IAG SUPPORT Student Finance Adviser Chris Snowdon 07917554298 Chris_Snowdon@slc.co.uk OPERATIONAL INFORMATION & SUPPORT SLC 24+ Loans Product Consultants The North: Hayley Walker 07810 658 422 hayley_walker@slc.co.uk Midlands & East Anglia: Lucy Marwood 07979 938 208 lucy_marwood@slc.co.uk The South: Laura Marshall 07901510400 laura_marshall@slc.co.uk Details of other regional advisers can be found at: www.practitioners.slc.co.uk/regional-support 24+

Learner Information Where to apply- https://www.gov.uk/advanced-learning-loans/overview Contact number- 0845 24 020 24 (Mon-Fri 8am-8pm Sat-Sun 9am-4pm) Independent Financial Advice- www.moneyadviceservice.org.uk

Questions and Further Information