Career Development Loans Explained

By Daniel Calloway
Published on 25 Sep 2007
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If you dream of going back to college but are worried about the expense we explain how career development loans could provide an affordable solution.

Career Development Loans are primarily designed to fund and support vocational learning through courses which focus on training tailored to a specific trade or profession. The courses can be on either a full or part time basis and via direct or distance learning. There are two varieties or Career Development Loans, those which receive government support and those which are provided by regular personal loan companies.

The variety offered as a government incentive can be used to contribute to a wide range of courses and are taken on a deferred basis. This means that you do not have to pay back the loan whilst you are studying and the interest payments during this time are covered by the LSC (Learning and Skills Council). There is a maximum of 2 years during which the loan repayments can be deferred; therefore, if the course you plan to undertake continues for more than 2 years, it?s advisable to use the Career Development Loan to fund the latter part of your studies. Government supported Career Development Loans can be used to contribute towards course fees, course costs i.e. travel and books, as well as additional living costs.

It is important to remember that if you do not complete your course, you will still be responsible for repaying the total loan amount. Additionally, loans of this nature are only available to those over the age of 18 who do not otherwise possess adequate funds to pay for their chosen course without the help of a Career Development Loan. There may also be limits on the number of hours spent in contractual employment whilst studying if you are claiming the living expenses contribution.

Many secured and some unsecured loan companies also offer Career Development Loans, however these tend to fall into the category of regular personal loans. This means that aside from any short term repayment holidays offered, repayments must commence shortly after the loan has been taken out and continue throughout the study period. However, if a loan with a low interest rate and sensible term is taken out, this can be a good way for those who wish to expand their skills whilst continuing with their employment. Continuous payment throughout the study period also means than the loan is repaid earlier and that there are no restrictions on how you spend the funds.

By researching course fees and associated course costs you should be able to choose a Career Development Loan that will provide an affordable path back into vocational learning, enabling you to study and enhance your skills and future career prospects without having to worry about money.

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