Advanced Learner Loan: can you afford to retrain?
An Advanced Learner Loan pays the course fees for adults in England taking a Level 3 to Level 6 qualification at an approved college or training provider. It is not means-tested, there is no credit check, and you repay nothing until you earn over the threshold.
Two things matter more than the loan itself: whether the course leads somewhere that pays enough to make it worthwhile, and which courses you might get free instead. Both are covered below, with a calculator to work out the first.
- Who
- Aged 19 or over on the first day of the course, living in the UK for the last three years
- Courses
- Level 3 to 6 at an approved provider in England
- Repayment
- 9% of income over £25,000 a year, from the April after your course ends
- Interest
- RPI only, for loans since August 2023
- Checks
- No credit check and not based on your household income
What the loan pays for
The loan covers course fees and is paid straight to the college or provider. It does not cover living costs, travel or childcare; colleges have separate learner support funds for those, so ask the student services team.
How to apply
Choose the course first. Ask the college or training provider for a Learning and Funding Information letter: it confirms the course, its level and the fee, and you need its details to apply.
Then apply on gov.uk (online, or by post). Apply early, as the loan has to be approved before the provider can be paid. Once it is, the money goes straight to the provider; you do not handle it.
How repayment works
You start repaying in the April after you finish or leave the course, and only when your income is over £25,000 a year (about £2,083 a month). You repay 9% of what you earn above that, taken through the tax system like a student loan. If your income drops below the threshold, repayments stop.
For loans taken out since August 2023 the interest rate is RPI only, so in today's money the balance roughly keeps pace with prices rather than growing in real terms.
Access to HE: the loan that can be written off
If you use the loan for an Access to Higher Education Diploma and then complete a higher education course that qualifies for student finance, the Access to HE loan is written off. The degree does not need to be in the same subject. You must complete both courses for this to apply.
What is changing in 2027
The Lifelong Learning Entitlement replaces Advanced Learner Loans for Level 4, 5 and 6 qualifications, alongside higher education student finance, for courses and modules starting from 1 January 2027. Applications opened in September 2026.
If your course is Level 3, including Access to HE, the Advanced Learner Loan is still the loan to apply for. If it is Level 4 to 6 and starts in 2027, check whether you need to apply through the Lifelong Learning Entitlement instead.
Before you borrow: courses you may get free
Adults in England who do not already have a full Level 3 qualification can often take their first one free, and some areas extend free Level 3 courses to people earning below a local threshold. Ask the college before applying for a loan.
Skills Bootcamps are free short courses of up to 16 weeks with a guaranteed job interview at the end. Apprenticeships are open to adults of any age, cost you nothing and pay a wage.
Is it worth it?
A loan is worth taking when the career it leads to pays enough more than you earn now to cover the income you give up while training. That is a sum, not a feeling, and the calculator does it for you using real UK salary data for the career you choose.
Questions people ask
Who can get an Advanced Learner Loan?
Adults aged 19 or over on the first day of their course, who have lived in the UK for the three years before it, studying a Level 3 to 6 qualification at an approved college or training provider in England. Your income and credit history are not checked.
When do I have to pay back an Advanced Learner Loan?
From the April after you finish or leave your course, but only when your income is over £25,000 a year. You repay 9% of income above that, through the tax system. Below the threshold you pay nothing.
Is the Advanced Learner Loan being replaced?
For Level 4 to 6 qualifications, yes: the Lifelong Learning Entitlement replaces it for courses starting from 1 January 2027. Advanced Learner Loans continue for Level 3 courses, including Access to HE.
How do I apply for an Advanced Learner Loan?
Pick your course and ask the college or provider for a Learning and Funding Information letter with the course details and fee. Then apply on gov.uk, online or by post. The loan is paid straight to the provider once it is approved.
Does an Advanced Learner Loan affect a mortgage application?
It does not appear on your credit file, but lenders may take regular repayments into account when assessing what you can afford, as they do with student loans.
Retrain into the right thing
Career Compass ranks up to ten UK careers from your own answers, with the reasons, the routes and a 30-day plan to test a direction before you pay for any course. £19.99 once, full report included.
More on paying to retrain
Funding rules apply to England and change often. Facts last checked October 2026; always confirm with the official source before you apply.