How funding will work

Q1: Will LLE replace the current SFE funding package?

A: Yes, for new English domiciled students starting an eligible course that begins on or after 1 January 2027, the LLE will replace the current SFE package for level 4 to 6 study offered by Office for Students (OfS) registered providers. Students who are ordinarily resident in England on the first day of the first course year and meet the relevant eligibility criteria will be able to apply. Under the LLE a ‘course year’ 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 in which part of the course is undertaken.

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

A: We will determine residual entitlement, which the student can obtain through a Tuition Fee Loan (TFL) balance application. Students will need to supply information relating to residency, previous funding and compelling personal reasons (CPR) in their personal account. We’ll then be able to calculate the student’s LLE residual entitlement, without needing any input from the education provider.

The student will first need to register as an SLC customer before they can obtain their balance without having to apply for student finance. The student will then be notified of the residual entitlement which they can view or share with their education provider’s recruitment or admissions team.

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: What is the tuition loan entitlement within the LLE?

(Updated 5 November 2025)

A: New students (those who have not yet had government support to undertake courses at level 4 to 6) will be able to access a full entitlement equal to 4 years of full-time tuition. This is currently equal to £38,140, based on today’s maximum fee limit of £9,535 per year. This means a student could use their £38,140 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 £38,140 and they use £6,000 for a 120-credit course, they would have £32,140 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 support from the government administrations of England, Wales, Northern Ireland or Scotland to undertake courses at level 4 to 6) may only have some, or none of their entitlement left, depending on previous funding they’ve 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 £28,605 in today’s fees will have a residual entitlement of £9,535. An additional entitlement, above the core 4-year entitlement, will be available for some priority subjects. Priority additional entitlement will give learners whose LLE balance is £0 as much tuition fee loan as they need to complete their course. It will come with the usual maintenance support and repayment terms.

Course types that will be eligible for priority additional entitlement are

• medicine
• dentistry
• nursing
• midwifery
• allied health profession subjects
• initial teacher training
• social work

Priority additional entitlement will only support full courses. Individual modules in these subjects will not be eligible.

Existing graduates who have already used their fee support can access priority additional entitlement to retrain in an eligible subject.

Q5: Is there a fee cap on what a higher education 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.

From academic year 2025/26, the maximum fee and loan limit for foundation years for courses will be lowered if more than 50% is delivered in a classroom setting (OfS price group D). These lower maximum fee and loan limits for foundation years will also depend on the provider’s OfS registration category, TEF and APP status. For example, for Approved (fee cap) providers with TEF and APP the fee cap will be lowered to £5,760. For courses where 50% or less is delivered in a classroom setting, the current fee and loan limit will remain as is. GOV.UK provides guidance for HE providers on tuition fees for foundation years in the 2025 to 2026 academic year.

Q6: If a student needs to repeat a full year due to compelling personal reasons, how would this be funded?

(Updated 5 November 2025)

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 CPR as we consider each case individually.

Q7: Will loans to help students with living costs still be available when the LLE is brought in?

A: Maintenance funding will be provided for all courses that qualify for LLE loan funding, if the course is not a distance learning course. 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, living location, personal eligibility and household income. This will broadly remain the same as the current criteria.

Q8: What courses, in scope of the LLE, will attract maintenance support?

A: Maintenance loans will be available for all designated courses and modules that are not distance learning courses.

• Maintenance support will be subject to personal criteria such as household income, and these criteria will broadly remain the same as now.
• As now, maintenance support will be available for distance learning students who are unable to attend a course in person for a reason related to their disability.

Extra financial help will also be available for:

• learners with disabilities
• support with childcare

Q9: 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).

Q10: What will happen to Advanced Learner Loan funding at level 4 to 6?

A: Some level 4 to 6 courses offered by providers not registered with the Office for Students (OfS) will be eligible for extended Advanced Learner Loan funding in the 2025/26 to 2029/30 academic years.

Q11: How will LLE funding work for modules?

A: Modular funding will be available for modules starting from 1 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 eligible for funding, modules must be:

• part of an existing designated full course, its ‘parent course’
• 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 to determine if they are eligible for funding
• 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.

Q12: 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.

Q13: 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.

Q14: Is there a minimum number of credits that a student can get funding for?

(Added 5 November 2025)

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

Q15: What is the mechanism for FE Providers to join the OfS Register?

(Added 5 November 2025)

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 2027/28. In the interim, the existing ALL funding system will remain in operation for providers that have not registered with the OfS under either of the existing categories.