General policy

Q1: When does the LLE come into effect?

Updated 18 April 2024

A: The LLE system is intended to launch within academic year 2025/26 for new students and students with previous study, looking to start a new course in January, who are ordinarily resident in England.

Q2: Does the LLE replace the current SFE funding package? 

Updated 18 April 2024

A: For new students, yes, from January 2026. The LLE will be the replacement for the current HE student finance system for level 4-6 study delivered by OfS registered providers.

Q3: What are the eligibility rules for returning (continuing) students?

Updated 18 April 2024

A: It’s expected most students who started a course in academic year 2024/25 or earlier will continue studying using the funding system under which the course was started that is under relevant existing HE Student Finance (HESF) or ALL rules. This includes course transfers where the rules on continuation of study apply (in relation to no breaks of study, the same qualification level, subject area and mode of study). We will share further updates in due course.

Students with prior study starting a course from January in academic year 2025/26 may have access to a residual entitlement, calculated based on reductions from the starting “fixed entitlement” to reflect previous government-funded study. Students who started and finished their course before January in academic year 2025/26 will fall under the LLE system for any new courses they start from January in academic year 2025/26.

Funding for students who start a course from January in academic year 2025/26 or later will be through the LLE. Students who defer entry from 2024/25 to courses starting from January 2025/26 onwards, will fall under the LLE system.

Eligibility and qualifying conditions for LLE funding will broadly mirror existing HE student finance nationality and residency rules, meaning most students will need to have been ordinarily resident in the UK throughout the three-year period preceding their course start date.

Loans for LLE courses and modules will be repaid under Plan 5 terms and conditions (or any future plan types which apply at the time a loan is taken out), and any unpaid loan balances will be written off after a period of time (currently 40 years) at no detriment to individual borrowers.

Q4: If a student needs to repeat a full year of their course or part of a year, how would this be funded?

Added 23 November 2023

A: A student’s fee loan funding for repeat study would be taken from their residual entitlement balance, except in cases of Compelling Personal Reasons (CPR). We will share further details in due course.

Q5: Will providers be given training on eligibility rules and new system requirements ahead of the launch of the LLE? 

Added 23 November 2023

A: We have an extensive training and awareness programme planned for Information and Guidance (IAG) practitioners and education provider administrators. We intend to deliver an intensive programme in Summer 2024. We will share details of this in early 2024.

Q6: What is the tuition loan entitlement within the LLE? 

Added 23 November 2023

A: New students (those who have not yet received government support to undertake courses at level 4-6) will be able to access a full entitlement equal to 4 years of full-time tuition. This is currently equal to £37,000 across four years based on today’s maximum fee limit of £9,250 per year.

This means a student could use their £37,000 to pay for more than 480 credits of learning, depending on the per-credit cost of the course. For example, if a student can borrow £37,000 and they use £6,000 for a 120 credit course, they would have £31,000 of their Lifelong Learning Entitlement left for other courses, regardless of the size or duration of the original programme.

Returning students (those who have previously received government support to undertake courses at level 4-6) may only have some, or none of their entitlement left, depending on previous funding received.

Those who have not used it all will have access to a residual entitlement. For example, a typical graduate who completed a 3 year degree worth £27,750 in today’s fees will have a residual entitlement of £9,250. This amount will be adjusted should the modern fee limit change.

An additional entitlement, above the core 4 year entitlement, will be available for some priority subjects and longer courses such as medicine. DfE will publish eligible courses in early 2024.

We'll provide more information in due course.

Q7: What repayment plan will be used for LLE loan repayments? 

Added 23 November 2023 

A: Students must start repaying their loan once they have left their course and earn more than a certain amount. This amount is known as the repayment threshold. A student’s repayments will depend on what they earn over the threshold; not the total amount that’s owed.

Repayment of LLE loans will follow the new system of student-loan repayments, introduced on 1 August 2023 for academic year 2023/2024, known as Plan 5. This means that repayments will only start once a student earns more than £25,000 a year before tax, equal to £2083 a month or £480 per week.

The amount repaid is 9%, or 9p for every £1, of a student’s gross salary over the repayment threshold. For most, this is automatically deducted from their salary at the same time as tax and National Insurance. Repayments continue unless:

• students have repaid their loan
• a student’s salary drops below the threshold
• a 40 year period has passed, and the loan is cancelled

Those with an existing undergraduate student loan, who then choose to use the residual entitlement they have left under the LLE to fund further undergraduate level study, will continue to make a single repayment of 9% of their gross salary above the repayment threshold.

Q8: Will a provider need to capture a record of a student’s learning?

Added 23 November 2023 

A: All universities, colleges and other providers currently record students’ achievements in some form. The government will not impose credit-transfer arrangements, but instead seek to facilitate credit transfer through other methods including through introducing the requirement for providers to provide a standardised transcript on completion of modules. This is to ensure a student’s assessed achievements are consistently captured under the new modular, credit-based system. Each student will be issued set pieces of information for each module that they can use to help when asked for evidence of prior learning when they enter a new course or module, or as evidence of learning to share with employers. It will also facilitate students to transfer between university, college or training centre.

Q9: Will currently funded Advanced Learner Loan courses at levels 4-6, move to the LLE system from 2025?

Added 14 December 2023

A: DfE has announced that Advanced Learner Loans will be extended for a further 2 years until 2027 for courses provided by Learning Providers that are not on the OfS Register.  

If you’re a provider that has already registered with the OfS, courses currently under ALL at levels 4-6 will be become eligible for LLE, if they meet LLE requirements and will be administered through the LLE system.

If you’re a provider that intends to register with the OfS before 2027, any courses currently under ALL at levels 4-6 will be become eligible for LLE, if they meet LLE requirements.

A third category of OfS registration will be introduced for providers not already on the OfS register but offering existing Advanced Learner Loan-funded courses at levels 4-6. This category will be available from 2027/28.

Q10: For providers in Northern Ireland, Scotland and Wales how will the implementation of LLE impact their course submission? 

Updated 18 April 2024

A: Providers in Northern Ireland, Scotland and Wales, with new England domiciled students in January of academic year 2025/26 will be impacted by the introduction of the LLE. To allow new England domiciled students in January of academic year 2025/26 to access LLE funding, regardless of where they are studying in the UK, providers need to submit an LLE version of the course so that students can be assessed correctly. More information on course submission will follow in due course.

Q11: SLC currently pays providers on a 25/25/50 split and students on a termly basis. Will this change? 

Added 21 March 2024

A: SLC is currently analysing various delivery options to address the new needs introduced by LLE. Using and building upon SLC’s existing Student Finance infrastructure and platforms to deliver the LLE will help maximise efficiencies in terms of delivery timescales. 

Q12: Will loans to help students with living costs still be available when LLE is implemented.

Added 21 March 2024

A: Maintenance loans are designed to help students with living costs while they study. There is a maximum limit based on a student’s course features, location and personal eligibility. This will broadly remain the same as the current criteria.