Career Development Loans

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Career Development Loans

First of all, let us see which people are eligible for such a loan. The conditions are not very strict, basically the person who asks for the loan has to prove that he/she wants to continue his/her studies, and it should be sure that after finishing those studies the debtor will be able to pay back the loan. Although this loan type covers a wide range of courses, the period should not be longer than two years, or exceptionally three years if the course includes work experience. A few examples for the courses which are covered by a career development loan: postgraduate courses, professional qualification, a course at a local college, technical training, management training, and for graduate people a second bachelor’s degree. These are only examples; the loan covers much more course types, for example the course does not even have to lead to a new qualification, it should only help the person’s career.

A career development loan covers most (if not all) the costs involved by studying: the course fees in a certain set percentage, other costs like books or travel, and other costs mostly for unemployed people. Unemployed people have even bigger benefits: their courses fees are covered 100%, and their living expenses like rent, clothing are covered by the loan. It is important to note that this loan is only for people who already have a career, so people who just started studying will need a student loan, not a career development loan! The rest of the criteria are easy to fulfill: the person has to be 18 years or older, and he or she has to be settled in the UK.

These are only basic criteria; there might be others too, depending on the bank. The amount of a career development loan can be between £300 and £10.000. As long as the person studies and one more extra month after finishing the course, he will not have to repay the loan, and the interest is paid by the Learning and Skills Council. As soon the person had finished his studies, he will have to start repaying the loan, with interest fixed in the contract. Both the interest rate and the period of repayment are fixed in the contract when the person receives the money, and they will not change during the time of the loan.

If the person is in financial difficulty after finishing the course, he should discuss the terms with the bank, and he might postpone the repayments, but this depends entirely on the bank’s policy. People should keep in mind that it does not matter to the bank if they had finished the course or not, they will still have to repay the loan. It is important to think it though if the person really wants to attend a specific course, or if the course provider seems safe, because the person will have to repay the loan even if the course provider goes out of business during the course. Another important aspect of such a credit is that the person should consider the amount of the loan twice before asking, only to make sure that he will be able to repay it after finishing the studies.

All in all, a career development loan offers a great opportunity for those people who would like to learn but cannot afford to pay for their courses!