Another week another look at another aspect of FE Funding. This week: Advanced Learner Loans.

Since their introduction, numerous adult education courses previously funded by grant now require students to take out a loan. But while government research has claimed that “learners become more discerning, motivated and engaged learners when undertaking their study in a loans-based environment” and that “learners who took out a Loan feel positively about them”, the story from other quarters is more than a little different.

Reception of Advanced Learner Loans

To put it mildly, Advanced Learner Loans have gone down like a lead balloon. From tales of disastrous Ofsted inspection results, to stories of an “FE loan scandal”, it’s near-impossible to find anyone saying anything positive about them outside of government reports written about their own policies. 

Student numbers speak for themselves: learners studying courses funded by FE loans fell for three consecutive years from 2015-2016 for a total reduction of 19%, and that’s in spite of the eligibility age being lowered from 24 to 19 three years ago.

The part sure to be most galling to providers and students both is that the government knew about the suppressive effect on student numbers as compared to the previous funding arrangement as early as 2013-14 and pressed ahead with and expanded the policy regardless.

What do providers say about Advanced Learner Loans?

My discussions with providers about Advanced Learner Loans have focused on eligibility requirements. Under current rules, providers who don’t currently hold an AEB or apprenticeship funding contract can’t offer Advanced Learner Loans to their learners, leaving many providers out in the cold. 

Even those providers who have accessed the funding have been highly critical about the policy, but don’t take my word for it. Evidence submitted to the Education Committee’s inquiry into adult skills and lifelong learning by LTE Group laid out providers’ criticisms better than I could.

While condemning the 45% overall cut in adult education funding between 2009-2018, the LTE Group reserved their most damning criticism for Adult Learner Loans, which have largely replaced grant funding for Level 3+ qualifications.

Noting a 26% decrease in adult learner numbers, the social enterprise laid the blame for reductions in Level 3+ learners squarely on the “socially regressive” Advanced Learner Loan policy:

“For Level 3 adult learners, the introduction of Advanced Learner Loans has been the single largest barrier and caused the greatest negative impact in the past five years.

“Many potential Level 3+ learners are unable to contemplate taking out a loan to fund their studies. They typically have much more complex personal life situations than the average 18-year-old university entrant.”

The group attributes the ongoing skills mismatch in part to the limited funding available under the loan system, noting that a lack of funding impedes progression from Level 1 and 2 to the Level 3+ qualifications which facilitate entry into higher-skilled and higher-paid work.

How to fix Advanced Learner Loans?

My discussions with colleagues have echoed the recommendations of LTE Group’s submission to the Education Committee and last year’s Augar report.

In short, nearly everyone says the same thing: scrap them. LTE Group recommends in their place a system of lifelong learning credits alongside a “single, easy-to-understand-and-access system for tuition fee loans and maintenance support.”

Augar favours guaranteed funding for Level 2 and Level 3 qualifications alongside a lifelong entitlement to finance equivalent to four years full-time undergraduate study which could be used for level 4-6 qualifications at any stage in an adult’s career.

Whatever your preferred solution, It’s clear that something needs to be done. The UK is still plagued by a skills gap, especially at Level 4 and Level 5. The industry is clear that Advanced Learner Loans are part of the problem and will welcome any announcement in terms of reform from Westminster.

Is your business struggling to meet the eligibility requirements for Advanced Learner Loans? I’m always available to advise on how to improve your position and help you access the different streams of funding available to you as a provider. Let’s talk - just connect with me on LinkedIn.