PreTraining Module Advanced Learner Loans and Repayment FE

Pre-Training Module Advanced Learner Loans and Repayment FE Account Managers, Partner Services

Agenda • Essential Messages for Learners • Access to HE Write-off Process • How Deductions Work • How Interest Works • Resources

Essential Messages for Learners • Loans are not subject to credit checks • Loan will not appear on credit files • Repayment will start in the April after the learner completes / withdraws from their course • Interest accrues from first payment until balance is paid in full • Deductions taken directly from salary • Those self-employed make repayments as part of annual self-assessment tax return

Essential Messages for Learners • Repayment threshold rose to £ 27, 295 from 6 April 2021 (monthly equivalent £ 2, 274) • Voluntary repayments possible • Repayments will stop if income drops below threshold • Loan balance written off after 30 years • Access to HE - outstanding balance written off when learner completes subsequent HE course

Access to HE Write Off To be eligible for Access to HE Diploma loan write off, a learner must: • Have a loan for Access to HE Diploma course which they have completed • Be eligible to apply for support • This includes EU domiciled learners • Completed HE qualification that was eligible for SFE funding

ALL Repayment Income each year before tax 9% will be deducted from Monthly Repayment (Approx) £ 27, 295 £ 0 £ 28, 000 £ 705 £ 31, 000 £ 3, 705 £ 27 £ 45, 000 £ 17, 705 £ 132 £ 60, 000 £ 32, 705 £ 245 i Repayment threshold rose to £ 27, 295 from 6 April 2021

ALL Interest levels applied will depend on a learner’s income and circumstances: During study until entering repayment Income: £ 27, 295 or less Income: £ 27, 296 to £ 49, 130 Income: Over £ 49, 130 i Interest Rate: Retail Price Index +3% Interest rate is: Interest Rate: Only Set RPI at RPI Interest Rate: RPI + up to 3% Interest Rate: RPI +3% Interest rate updated once a year using RPI figure from March which is carried forward and applied in September (2. 6% for 2020/21)

Further Resources https: //www. practitioners. slc. co. uk https: //www. gov. uk/repaying-your-student-loan

FE Account Managers Partner Services * lpservices@slc. co. uk 8 www. lpservices. slc. co. uk