Advanced Learner Loans Funding update Feb 2016

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Advanced Learner Loans Funding
a general update as of 23rd Feb 2016
For the 2016 funding years onwards
a summary by Safaraz Ali
Feedback & comments @SafarazAli or
https://uk.linkedin.com/in/safaraz (E&OE)

Learner eligibility for loans
Loans are not means-tested and are available to eligible learners who are:
• aged 19 or older on the first day of their learning aim
• studying in England, with a provider in receipt of a loan facility
• studying one or more approved learning aims at Levels 3, 4, 5, or 6 availability of
loans at Level 3 does not replace an individual aged 19 to 23’s legal entitlement to
full funding for a first full Level 3.
• Where the training provider accesses direct Adult Education Budget funding
from SFA to deliver a first full Level 3 qualification to a learner who is aged 19
to 23, a learner must not access a loan for the same qualification delivered at
the same time. Should this situation occur the provide must cancel the loan
and, if applicable, refund any loans payments that they have received on
behalf of the learner to the SLC.
• SLC is responsible for assessing whether a learner is eligible.
• funding rules relating to loans for offenders in custody and those released on temporary
licence not yet released

Loan amounts and financial contributions
• The Training provider must provide all learners of their fees and
charging policy in advance of their decision to apply for a loan.
• A learner will only be eligible to apply for a loan that is either
equal to, or less than:
• the maximum loan amount in the learning aims section of the
Hub for the qualification(s) they are undertaking or
• the providers fee, as shown in the produced learning and
funding information letter and provided to the SLC as part of
the learner’s loan application
• The minimum loan value a learner can apply for is £300

Loan amounts and financial contributions
• The SFA does not expect that a provider would need to charge more than the maximum
loan amount as shown on the Hub.
• Learners can only apply for loans to cover the tuition fee element of their provision,
including all costs and charges for items without which a learner cannot complete their
course.
• A provider can pass on membership fees, made by professional bodies, to the learner.
The provider cam charge these as a requirement of enrolling if this is needed to achieve
the learning aim.
• The provider can ask a learner funded by a loan to pay directly for extra activities not
essential to the learning, such as trips and visits. The provider can not make it a
condition that the learner takes up the optional extra provision to complete or achieve
their learning aim.
• If a learner funds their provision with a loan and needs a Disclosure and Barring Service
(DBS) check to take part in learning, the provider cannot charge them for this. If the
learning is associated with the learner’s employment, their employer is responsible for
carrying out and paying for this check.

Qualifications designated for loans
Designating Qualifications and includes the following
types of provision.
• A-levels and AS-levels (up to a maximum of four full A-
levels) (see paragraphs F42 to F45).
• Quality Assurance Agency (QAA) Access to Higher
Education Diplomas.
• Vocational qualifications including technical and
professional qualifications at Levels 3, 4, 5 and 6

Qualifications designated for loans
• The training provider must check that the learning aim is valid for new
starts on the date that the learner is due to start. This can be checked
on the Hub
• Loans cannot be used to fund components of qualifications.
• The provider must make sure that it provides accurate unique learner
number (ULN) information to awarding organisations and that all
information that is used to register learners for qualifications is
correct
• Where a learner takes out a loan for the Access to HE Diploma,
completes it and progresses to and completes a Student Finance
England funded HE course, the balance relating to the loan for the
Access to HE Diploma will be written off.

Number of loans
• Learners are entitled to access up to four loans, which they can
take out either one after the other or at the same time.
• Learners will need to apply for a loan for each learning aim.
• Within the entitlement of four loans, a learner is entitled to
apply for:
• no more than one loan to complete an Access to HE Diploma
• up to eight loans to undertake up to a maximum of four full A-
levels; this will be treated as one single loan entitlement.
• no more than four loans to undertake vocational
qualifications including technical and professional
qualifications at Levels 3, 4, 5 and 6

A Levels
A learner can study a full A-level by enrolling on an A-level learning
aim or enrolling on an AS-level learning aim and then progressing to
an A-level learning aim.
• Where a learner intends to study towards and sit only an A-level
exam, they can apply for up to four loans for four A-level learning
aims. They can make these applications at the same time or one
after the other.
• Where a learner intends to study towards and sit an AS-level
exam, not followed by an A-level exam, a learner can apply for up
to four loans for four AS-level learning aims.

A Levels
• Where a learner intends to study towards and sit an AS-level exam, and chooses
to follow this with an A-level exam, a learner can apply for up to four loans for
four AS-level learning aims and up to four loans for the corresponding A-levels.
In this scenario providers must reduce the fee charged to the learner for the A-
level(s) to take account of the prior study of AS-levels, thereby reducing the
amount of loan a learner would have to take out. The total fee for the AS-level
and A-level must not exceed the maximum loan amount for the A-level.
• If a learner enrols on a combination of A-level and AS-level learning aims, they
will be able to apply for loans to undertake up to four full A-levels, subject to
the overall limits for each learning aim type, outlined above.
• Providers access further information, including illustrative examples, in the SFAs
guidance for recording A and AS levels on the ILR.

Changes to Subcontracting
The SFA announced week beginning 22nd February 2016 that it will cease to permit
subcontracting within the Advanced Learner Loans with effect from the
commencement of the 2017/2018 funding year.
In addition the SFA state that to support a smooth transition they are inviting those
current loans subcontractors that meet their updated criteria for accessing a loans
facility to enter into a direct agreement for a loans facility for the 2016 /2017
funding year.

The SFA general criteria is that a provider must:
• have successfully entered the SFA’s Register of Training organisation s (ROTO)
• have passed the capacity and capability questions for their ROTO application,
• have been operating for a minimum period of the past 2 academic years in a
subcontracting arrangement;
• through the analysis of the ILR data, demonstrate a certain minimum completion and
continuing rate of 70% or more for 30 learning aims or more
• holds an SFA financial health assessment of ‘good’ or ‘outstanding’
If the provider passes the capacity and capability questions associated with the register
application and the facility is agreed they will be able to deliver education and training
funded through loan. This agreement will commence at the start of the 2016/17 academic
year, with learners being able to apply before this date which will be confirmed after
facilities have been awarded.

Changes in Partnerships Model
• The SFA will cease to allow subcontracting within the
Advanced Learner Loans programme from the start of the
2017 to 2018 funding year
• This aims to protect the interests of learners who choose to fund their
provision with a loan, and public funds
This means:
• the delivery of all loans-funded subcontracted learning aims must be completed by 31 July
2017
• providers must not enter any new subcontracting agreements for the delivery of loans
funded provision in 2016 to 2017, over and above those which they are already be engaged
with in 2015 to 2016
• in 2016 to 2017 any provider which holds a loans facility directly with the SFA cannot also
act as a subcontractor to another prime contractor for the delivery of loans funded
provision

VAT Inconsistency
VAT on FE loans with independent training providers
• the different legal statuses held by colleges and independent training providers as
led to
• 20% being added to the cost of training for Private Training Providers
• This VAT is irrecoverable by the training provider leading to a significant rise
in the cost of providing these courses.
• Furthermore, the level of funding for the course has been fixed by the SFA so,
in reality, the provider can’t increase the cost of the course to the student.
Therefore this impacting on money available for delivery, with potential
impacts on quality of delivery and sustainability of the provider.
• Arguably FE colleges who are VAT exempt operate in the same commercial
environment and Private Training Providers. Therefore this could be seen to
be unfair completion and has led to a distortion in the market. With
Colleges being chosen over Private training providers and given a preferential
funding stream.

Advanced Learner Loans Funding update Feb 2016

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Advanced Learner Loans Funding update Feb 2016