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Advanced Learner Loans: Have They Been Successful?

Since 2013, Advanced Learner Loans have been available to any learner over the age of 24 wishing to study a qualification at level 3 or 4. In August 2016, the scheme was opened up to those aged 19 or over and the government extended the type of qualification recipients can get a loan for up to level 6. So how successful has the scheme been – particularly since its expansion last year?

In 2013, the Advanced Learner Loans scheme was dubbed a failure, having attracted only 404 applications a staggering seven months after it was first launched by the government. This led to business secretary Vince Cable publicly announcing that the scheme had not worked and would be dropped.

Ultimately, the scheme was extended in 2016. However, arguably, rather than ensuring the scheme fulfilled its purpose and encouraged the take-up of Further Education (FE) courses, Higher Education (HE) has arguably benefited the most from the scheme, as level 3 and level 6 qualifications are the most likely to be taken up by applicants, leaving a significant gap in the number of people using the scheme to gain a level 4 or 5 qualification.

Below are some fast-facts about how the scheme has performed over the last two academic years, along with some early results which provide an indication of a shift in the way that the scheme has been used since it was extended:

Advanced Learner Loans (24+): The Facts

  • The number of applications received for 24+ Advanced Learning Loans increased from 67,280 in the 2014/15 academic year to 80,650 in 2015/16 – an increase of 20%.
  • The total value of loans approved increased from £148.8m in the 2014/15 academic year to £195.2m in 2015/16 – a 30% increase.
  • The average loan ready for payment also increased from £2,620 in 2014/15 to £2,740 in 2015/16 – a 4.6% increase.
  • The Diploma in Fitness Instructing and Personal Training (QCF) qualification awarded by the Lifetime Awarding Organisation (LAO) received the most 24+ Advanced Learning Loan applications in the 2015/16 academic year (before the expansion).
  • The Health, Public Services and Care sector subject area (SSA) received the most applications, at 24,810.

 

How have things changed since the scheme was extended?

  • 76,810 applications were received for the 2016/17 academic year, to January 2017 (leaving the year on-track to receive a record number of applications).
  • Access to Higher Education qualifications also received a large amount of applications, with 18,620 being received overall for the 2016/17 academic year. These accounted for 24% of all applications.
  • 18,010 applications have been received from the 19-23 age group for the 2016/17 academic year, to January 2017. The 24-30-year-old age group continue to have the majority of applications (22,440).

 

It’s clear that the scheme is growing in popularity, with significant YOY increases in applicant numbers and loan value, but is HE rather than FE reaping the benefits?

A final report for the 2016/17 academic year is planned for release in October 2017, so we will be following closely to see whether take-up of HE qualifications through the scheme continues to increase, or whether FE institutions will see any benefit from the scheme’s expansion.

At AlphaGraphics, we specialise in helping FE and HE institutions deliver data-driven, automated marketing campaigns To find out more, visit: https://education.alphagraphics.co.uk/about-us/