Professional and Career Development Loans
Are you stuck after you took up career development loans? Yea sometimes it frightens to remember you still owe some amount of money you have made use of in the time past however today we will be detailing out how you can easily pay.
If Professional and Career Development Loans were still around as they were back in those days, students could borrow up to £10,000 and have it interest-free during their study period, whether they were studying for a course, a postgraduate degree or a training programme.
It is unfortunate to say that in January 2019, the government scrapped the scheme, which is why the loans are not available anymore.
But this doesn’t affect any existing loans that have been taken out. The borrower is in the right place if he or she would like to learn about the terms and conditions of the loan repayment.
Do career development loans still exist?
In the past, Career Development Loans were used as a means of paying for training courses by means of a bank loan. Unfortunately, as a result of a number of reasons, the scheme has closed its doors to new applicants as of January 25th, 2019.
What are Career Development Loans?
As the name suggests, Career Development Loans are a type of bank loan which is provided for any training or courses you might need to advance your career or get a job in the future.
As opposed to a personal loan, the Government Skills Funding Agency (now called Education and Skills Funding Agency) used to be responsible for paying interest on the loan as long as you are still studying, so you don’t have to pay this interest when you take out the loan.
At the end of your course, the government funds are supposed to last for a while, so you’ll only be required to pay back the loan (with interest) one month after you finish studying, which is the time when you will be able to start paying it back.
It is up to you to decide how much money you want to apply for (the amount should be between £300 to £10,000), and over the course of the program, you can use the funds towards course fees, living expenses, and other learning expenses.
Alternatives to the Career Development Loan
so many might be wondering what has replaced career development loans? alright continue reading below to get more insight of the latest development in terms of career Development Loan:
- Instead, consider taking out a student loan for your postgraduate, doctoral or part-time studies.
- For the purpose of covering the course fees, you may want to look for student bursaries. Various charities and organizations are doing this at the moment, so make sure that you do your research thoroughly.
- If you believe the course will be beneficial to your employer, then ask him or her to sponsor you.
- It is possible to study part-time while also working part-time to help cover the costs of studying.
- The best thing you can do is to work a little and save up as much money as you can.
Obviously, these options might not be available to everyone, but they’re worth looking into since every loan comes with its own risk, and depending on how long it takes for you to pay back the loan, you could end up paying some hefty interest fees.
There is nothing wrong with it, I believe. Having said that, after the funding has been eliminated, what are the alternatives now that it has been withdrawn? Listed below is a quick list of alternatives for the Career Board that you may be interested in
Repaying a Career Development Loan
You would have also been asked to set your repayment terms when you applied for your Career Development Loan, which is basically how much you should be paying back each month over a period of time which you determined when you applied. Your loan can be repaid over a period of one to five years, or you can pay it off in one lump sum when the time comes.
You might be paying less each month if you spread the repayments over a longer period of time, but you will end up repaying more in the long run as more interest will accumulate over time.
There’s one thing we’d like to emphasize here, which is that unlike regular Student Loans, we’d recommend you repay a loan like this as quickly as you can before interest accumulates.
Nevertheless, be careful not to push yourself too far. Your credit score will be affected if your monthly payments are too high and you are unable to meet them. This will result in a negative impact on your credit rating if your repayments are too high.
The Co-operative Bank
In the service of Professional and Career Development Loans, Co-operative Bank was the only lender giving away 9.9% representative annual percentage rates, which was the lowest interest rate on offer at the time. You will have to take into account any additional costs incurred as part of the agreement in order to calculate the interest rate you’re likely to pay. you can make use of the development loan calculator
There is a table below which gives you a more accurate picture of how much interest you will be paying, based on the length of time it takes for you to repay the loan:
|Repayment period||12 months||36 months||60 months|
Perhaps you will be able to find a better interest rate on a personal loan elsewhere if you look around. This means that if you decided to repay your Career Development Loan using a loan with a lower interest rate, you will be able to borrow a new loan with a lower interest rate in order to repay the Career Development Loan.
As with any loan, there are risks involved with it. The Career Development Loan Company strongly advises you not to take out any additional loans until you have fully researched your options as well as the consequences of doing so, including early repayment terms for your career development loan, before taking out any additional loans.
You should keep in mind that you will still be required to repay your loan if you drop out of the course, or if the provider of the course goes out of business as a result of your participation.
Can you repay early?
Even though you can pay off your loan early if you wish, you may still be subject to some charges.
In accordance with the Co-operative Bank’s terms and conditions, you will be charged a 28-day interest fee if you decide to pay off your loan early after you have agreed to repay it within one year or less.
You will be charged 58 days interest if you choose to repay your loan early if you agreed to repay it over an extended period of time.