Advanced Learner Loans (loans) have been a feature of the funding of adult education and training programmes for the last three years , and despite the funding available for them rising to £268 million in 2016-17, evidence shows that the take up of loans has not been as high as expected. So what are the issues on both the demand and supply sides of the adult learning market that have caused this?
Loans were previously only available to adults aged 24 and over on the first day of their programme and for learning aims at levels 3 and 4. Since August of 2016, their scope has been extended to include adults aged 19 and over, and they are now available for learning aims from levels 3 to 6. The aim was to remove some of the barriers to participation by adults required to find 50% of the cost of fees for their programmes, and also to encourage more adults to share the cost and ‘invest’ in their own learning. The learner applies for a loan from Student Loans Company (SLC) to cover the whole cost of the fee they are charged by the provider for an eligible learning aim, e.g. Access to HE diploma.
The learner can access up to four loans for vocational, technical and professional learning aims, and eight for AS and A levels. The learner can also apply to the Loans Bursary Fund to cover additional costs of learning, e.g. childcare and learning materials, and also if they are experiencing hardship or have learning support needs. Apprenticeships are not in scope for loans, but other forms of work based learning can be.
The growth in demand for loans has been steady from about 59,000 students taking out loans in 2013/14 to just over 90,000 in 2015/16. However, many providers have reported that they have not used up all of their loan facilities. The greatest number of loans have been for level 3 courses with less than 10% for level 4 courses. Access to HE (where learners do not have to repay the loans if they complete a HE programme), Health and Social Care, and Professional, Finance and Administration, have had most loan funded learners.
The extension of loans to 19-23 year olds seems to have increased the demand for loans but there are still key issues affecting demand that need to be addressed. Although loans have not deterred learners who want to continue their learning, or those who expect to get a positive return on their investment, or, where they will not expect to reach the earnings threshold to repay the loan, there is evidence to show that more needs to be done to increase demand. General awareness amongst potential learners and employers of the loans programme needs to be developed further. Sources of information about the availability of loans need to put more emphasis on the benefits of learning at level 3 and above in terms of improved skills, higher earning and productivity, and also be more tailored for specific audiences, e.g. different socio-economic groups. Despite some good practice, advice and guidance for adults needs to be more comprehensive and use social media more effectively and interactively.
Generally, the support that colleges and training providers offer to learners who are considering loan financing and resources to assist informed choices have been good, but not targeted enough at points of learner resistance and reluctance, e.g. from some sections of the community. Information and advice worked best for learners who had already made the decision to return to study. Providers who worked with appropriate partners, e.g. JCP and National Careers Service, and subcontractors have been more effective in marketing loan opportunities. LEPs and the representative bodies of key sectors should also promote the availability of loans especially to prospective learners, e.g. existing level 2 learners.
On the supply side, colleges and other providers need to have an attractive offer for different groups of learners who may want to continue or return to learning, and then fund the learning by a loan. So the range of courses, especially at level 4 to 6, must be reviewed and matched to need.
This also poses a challenge for awarding bodies to ensure the greater availability of higher level qualifications. Those providers who have offered more flexible delivery patterns, often with elements of blended learning, have been more successful in increasing their loan funded provision, e.g. health and beauty. Providers who have integrated loan funded provision into their education and training offer, seeing it as both a new market and new curriculum development, have made the necessary changes to their offer and the way it is delivered. Opportunities for new entrants to the adult learning market, e.g. through the RoTO, has also increased provision for loan funded learners.
Because the quality dynamic is different and loan funded learners see themselves as consumers, providers need to focus on all aspects of their provision and the benefits for learners. The value proposition must include features such as flexible study times, blended and distance learning, childcare facilities, study and tutor support, as well as benefits in the form of improved skills, personal development, increased earnings and promotion opportunities.
So Advanced Learner Loans look set to be an important part of the financing of adult education and training for many years to come; it is critical that we take full advantage of the opportunities provided, and that means we need to understand both the demand and supply sides of the learning market, and how to make it work more effectively.