Want a couple of examples of how repayments work? No problem.
“Marie works in an office environment and wants to do a Business Administration Level 3 Diploma. She earns £18,000 per annum, and is happy in her role. Marie applies for a 24+ Advanced Learning loan, and passes her course six months later.
In April 2016, when the first payment falls due, Marie is earning £18,500, which is £2,500 under the threshold for payments, so she repays the loan at a whopping £0.00 per month.
Nothing at all.
Nowt. Zip. Nada. How cool is that?
She’s always been a smart cookie, that Marie!
Brian works in Recruitment, and he decides that he’d like to do a Diploma in Recruitment at Level 4, with view to doing a Business Degree later on. Brian earns £25k per annum.
On completion of his course, Brian finds his new improved performance results in him earning £28k per annum. By April 2016, when the repayments are to start, Brian has increased his earnings to £32,000 per annum having achieved a promotion. Well done Brian!
He pays back the cost of his course at, drumroll please...£19.05 a week. That’s the equivalent of a Saturday night takeaway for two.
If Brian’s earnings had stayed at £25k, his course repayments would’ve been a positively miniscule £6.93 per week, which is the equivalent of one regular supermarket bottle of Pino Grigio a week!