How funding will work

Q1: Will LLE replace the current SFE funding package?

A: Yes, for new English domiciled students starting a designated course that begins on or after 1 January 2027, the LLE will replace the current SFE package for level 4-6 study offered by Office for Students (OfS) registered providers. Eligibility criteria for the LLE will track to existing HE Student Finance nationality and residency rules. Under the LLE a student’s LLE eligibility is derived from a ‘course year’ which is defined as the 12-month period starting on the first day of the calendar month in which the student’s course begins (“the first course year”), and each subsequent period of 12 months (if any) in which part of the course is undertaken.

Q2:  How will the LLE balance be determined. Will education providers need to be involved?

A: Students applying for LLE funding will create and have access to a personal account that will host essential details such as, loan entitlement, application status, and study history.

A student will be required to complete a Tuition Fee Loan (TFL) balance application by suppling information relating to residency, previous funding and Compelling Personal Reasons (CPR). We will then calculate the student’s residual entitlement, without requiring any input from the education provider. It is important to note that at this stage this is an estimate and not a guaranteed amount.

Q3: Will the student’s previous loans be taken in account?

A: Yes. Students who've received support for higher level learning from the government administrations of England, Wales, Northern Ireland or Scotland and start a course that begins on or after 1 January 2027 at an OfS registered provider may only have some, or none, of their entitlement left. Those who have not used it all will have access to a residual entitlement.

Q4: Is there a fee cap on what a HE provider can charge for a foundation year?

A: Students enrolling on a foundation year can access tuition fee and maintenance loans for the full duration of their extended course, if it's integral and allows progression to a full degree course designated for student finance.

The maximum tuition fees and loans for foundation years in classroom-based subjects reduced to £5,760 from the 2025 to 2026 academic year. Maximum fees for foundation years in all other subjects will remain aligned to the maximum fee limit of the relevant academic year.
The LLE system will include separate limit-per-credits for these foundation years. This will also depend on whether the provider has a Teaching Excellence Framework (TEF) rating or Access and Participation Plan (APP).

Q5: What happens if a student has studied abroad? Does this study count in LLE calculations anywhere?

A: For post-2012 study, if the student has studied abroad as part of a UK course and has received funding from student finance, we will make deductions as part of their residual entitlement calculation. We will not make deductions if the student self-financed the overseas study.
For pre-2012 study, we will apply a reduced deduction rate for full and partial self-funding.

Q6: If a student needs to repeat a full year due to Compelling Personal Reasons (CPR), how would this be funded?

A: In cases where CPR are present, we will add the cost of the affected study back on the learner’s LLE balance for study affected by compelling personal reasons, such as illness and bereavement.  There is no definitive list of reasons deemed as CPR as SLC consider each case individually.

Q7: If a student is only required to repeat a 20-credit unit, are they able to access LLE funding to cover this?

A: Current approach

Under the current system, entitlement for student support for full-time designated courses (i.e. where the normal intensity of study in an academic year is 100%), is calculated as: 

Entitlement = course length + 1 additional year − any previous study 

This means a student who needs to repeat some or part of their course can usually access funding unless they have already used up this entitlement.

Underpinning LLE rules

Under the Lifelong Learning Entitlement (LLE), students must undertake at least 30 credits in the course year. This is known as the “minimum funding requirement”. Learners will be able to draw down loans to study up to 180 credits per year. This includes credits taken across multiple courses or modules within the same “service year”. 

The 30 credit threshold follows the current student finance system, where students must study at least 25% intensity to qualify for support. This also represents a meaningful amount of study, while also allowing for flexible approaches to delivery. 

LLE approach

Under the LLE, repeat study credits will be excluded from maximum per-course amounts. Providers can charge for the exact number of credits being repeated, and students will be able to get funding for the repeat credits provided the student is undertaking a minimum of 30 credits in a course year.  

If a student is required to repeat fewer than 30 credits in a given course year, whether this is as part of a module or a longer programme, the minimum funding requirement may still be satisfied by either:

• the student repeating the credits in the year which they initially failed them in; or
• the student repeating the credits in a subsequent course year when the student is taking additional credits as part of the overall qualification.

If neither applies, the student will not qualify for student support. They will either need to self-fund the remaining credits or identify funding from other sources.    

Q8: Will there be Equivalent or Lower Qualification restrictions under the LLE?

A: The LLE will remove the existing Equivalent or Lower Qualifications rule meaning that students can use their entitlement to fund further tuition fee costs. This is regardless of any prior qualifications they’ve attained (subject to having sufficient entitlement left).

Q9: What will happen to Advanced Learner Loan funding at level 4-6?

A: Some level 4 to 6 FE courses offered by providers not registered with the Office for Students (OfS) will be eligible for extended advanced learner loan funding in the 25/26 to 29/30 academic years.

Q10: How will LLE funding work for modules?

A: Funding will be available for modules starting from 1st January 2027. This will be for modules of Higher Technical Qualifications (HTQs), and Level 4, 5 and 6 modules from full Level 6 qualifications which address priority skills gaps and meet the government’s industrial strategy in:

• computing
• engineering
• architecture, building and planning (excluding the landscape gardening subgroup)
• chemistry
• physics and astronomy
• mathematical sciences
• economics
• nursing and midwifery
• health and social care
• allied health

This list will remain under review and may be amended.

To be designated for funding, modules must be:

• part of an existing designated full course, its ‘parent course’ delivered by the provider
• at least 30 credits, or a bundle of modules from the same ‘parent course’ equalling at least 30 credits
• have a single qualification level which should be level 4, 5 or 6
• assessed and given a standardised transcript when they’re completed, to support credit transfer and facilitate labour market currency

Modules must not be delivered via franchise arrangements.

Examples of module bundles that equal at least 30 credits are:

• two 20-credit modules (40 credits)
• one 10-credit module and a 20-credit module (30 credits)
• two 15-credit modules (30 credits)
• three 10-credit modules (30 credits)

Unless they wish to, there is no need for providers to redesign their course structures if they do not already operate on a 30-credit basis.

This funding will only be available to students living and studying in England at a provider registered with the Office for Students (OfS). Eligible students will be able to apply for LLE funding for modules from September 2026.

Q11: Is franchising allowed under LLE?

A: At launch of LLE English providers can franchise out full courses to registered and non-registered English providers, however modular courses cannot be franchised out.

Q12: How will credits help determine the fee limits in LLE?

A: The fee limit will relate to the amount of study in the course, rather than the time spent studying. A credit-based method for setting fee limits will be introduced under the LLE. This will work across all courses and modules funded by the LLE, regardless of whether they’re studied on a full-time, part-time, or accelerated basis.

Q13: Is there a minimum number of credits that a student can get funding for?

A: To qualify for tuition fee loans, a student must be undertaking a minimum of 30 credits in a course year.

Q14: What is the mechanism for FE Providers to join the OfS Register?

A: FE Providers will be able to apply for either of the existing OfS registration categories. The OfS will confirm arrangements for any new provider to join the OfS Register from academic year 2026/27. In the interim, the existing ALL funding system will remain in operation until 2030 for providers that have not registered with the OfS under either of the existing categories.

Q15: If a student has previous studies that they funded themselves, will this be included in the Residual Entitlement Calculation?

A: If a student has not received Tuition Fee Loan support previously and instead decided to self-fund their previous study (post-2012), they would retain their full LLE entitlement.

For pre-2012 study a reduced deduction rate is applied for full and partial self-funding.