FE loans – what do you think?

By: Nicola Hughes

Communications Leader

Thursday 09 August 2012

0 Comment

It’s recently been announced that from August 2013, learners aged 24+ who’d like to do a Level 3 or above qualification will need to use an ‘FE loan’ to fund this. At present, the government subsidises FE courses for adults by up to 50%.

The new loans will be available for those resident in the UK, who’ve not previously had a loan to do the same type and level of qualification (learners can have up to 4 loans consecutively). A learner’s loan will cover the cost of the qualification or components of the apprenticeship but won’t include living costs or materials.

There’s no doubt that this major policy change will have an impact on both training providers and learner behaviour – but can we predict what the effect will be?

It’s possible that the loans will widen participation if learners see the cost as a worthwhile investment in their future career. The loans could also be representative of new opportunities, as it becomes possible for professors with PhDs to retrain as electricians or plumbers - potentially great news for the economy!

However, there is also the risk that the loans will discourage adults from furthering their education. Will learners now be reluctant to progress from a Level 2 qualification to a Level 3? Will they be able to carry the cost of 2 loans – one at FE and then another one at HE?

How can colleges and training providers prepare for the transition?

Tags:

Authors

Lindsay Plumpton

Communications Leader
96 posts
David Grailey

Chief Executive
79 posts
Andrew Gladstone-Heighton

Policy Leader
75 posts
Esme Winch

Managing Director
35 posts
Michael Lemin

Policy and Research Manager
25 posts

Schools

Colleges

Training Providers

Employers

Learners

NCFE is a national Awarding Organisation

Join the debate