What is a Career Development Loan (CDL)?
A CDL is a deferred repayment bank loan and can be used to cover your course fees plus all your related expenses, including books, childcare, travel etc. The loan cannot be used to pay for anything that is being financed by another public funded source.
How much will I be eligible for?
CDLs of between £300 and £8,000 are available (per annum) for up to three years through a partnership between the Learning and Skills Council (LSC) and three high street banks: Barclays, The Co-operative and The Royal Bank of Scotland. You do not need to be an existing account holder but the bank may require you to open an account with them.
You can only use one CDL to pay for one course. However, if you borrow less than the maximum amount, you may be able to increase your loan. A CDL can help to pay for up to two years of vocational (work-related) learning or up to three years if the course includes one year's relevant practical work experience. If your course lasts longer than this, you may still be able to use a CDL to pay for part of it. You will still be required to repay your loan, even if you do not complete the course.
Who is eligible for a CDL?
To be eligible for a CDL, you must be ordinarily resident in Great Britain (e.g. England, Scotland and Wales) and have an unlimited right to remain in the United Kingdom (UK). You will not qualify for a CDL if your right to remain within the UK is subject to any restrictions e.g. if you hold a study visa.
If there are any restrictions on your stay in the UK it is unlikely that you will qualify for a CDL. You must also intend to work within the European Union (EU) once you have finished your course as CDLs are part funded through the European Social Fund.
Furthermore you are not entitled to a CDL if you are eligible for a Student Loans Company student loan or if you have a job and your employer receives a grant for your training. The decision about whether you can have a CDL is the responsibility of the bank. There is no guarantee that all eligible students will receive a CDL. Eligibility is also subject to your credit rating.
How do I apply for a CDL?
To apply for a CDL you should telephone the CDL information line on 0800 585 505 for an application pack or alternatively look at the website www.lifelonglearning.co.uk/cdl. You as the applicant are personally responsible for choosing an appropriate course and provider and completing the application form. Further information on CDLs can also be obtained from any of the participating banks.
Complete the CDL application form and return it to the bank. On your application form you will be asked to provide a learning provider registration number which is 10612. Before you can submit your application form to the relevant bank, you will need to take it to the University's Finance Services as they will need to confirm your tuition fees. Make sure that you fill out each form fully and accurately. Your application form may be returned to you if it is incomplete or inaccurate which will delay your application. You can't apply to more than one bank at a time. You can apply after you have started your course, but there needs to be enough time to process your application before the course ends
How will the bank decide about my application?If you think your credit history may be a problem, it's a good idea to contact the bank before you complete the application form. The bank will check that you are eligible for a CDL and that you will be able to repay the loan when you have completed your course. The bank will let you know whether or not your application has been successful. If your CDL is agreed, you will be sent a credit agreement that you need to sign and return to the bank.
How will I receive my loan?
When you start your course, you and your learning provider (Coventry University's Finance Services) will complete a ‘Start Certificate' and submit it to your bank who will release the funds. The bank cannot release any funds until the University has confirmed that you have started your course. Your bank pays your course fees direct to the University's Finance Services in staged payments. Money for other expenses is paid directly into your bank account.
If your course lasts for a year or more, the bank will pay living expenses in stages throughout each year of the course. If you want to pay for your course in stages, then you will need to discuss this with the University's Finance Services and the bank.
When would I need to start repaying the CDL back?
Repayment of a CDL does not begin until one or two months after graduation. The Learning and Skills Council pays the interest on the CDL during the period of study and for one month afterwards, but you become entirely liable for repayments after that time. You need to repay the loan to the bank in accordance with their loan agreement over an agreed period (between 12 and 60 months) at a fixed rate of interest.
It may be possible for you to postpone the start of your loan repayments if, before you are due to start repaying, you can prove that you fulfil one of the following conditions. You are:
Provided that one of the above conditions is met, loan repayments can be postponed for up to a maximum of seventeen months, during which time the LSC continues to pay the interest on the loan. You will have to agree any postponement with the bank before the date that repayments are due to start.
The student support arrangements for students in higher education change each year. It is important that you check the eligibility criteria for each fund before you apply.