Professional Career Development Loans (PCDL)

Last week I attended briefing session by the Learning Skills Council to find out about the new Professional Career Development Loans (PCDLs).  They replace Career Development Loans which have been helping people pay for further study for 20 years.

If you think taking a course would enhance your career prospects, perhaps by helping you qualify for a particular career, to help you improve your earning potential in your current career or to change direction you might consider applying for a PCDL to pay for the fees and/or your living expenses.

A PCDL is a bank loan not a student loan.  This means that the terms and risks are very different.  I would strongly suggest exploring alternative funding sources before deciding to apply for a PCDL.

Where to look for funding for further study

1. Ask the course provider if they offer any funding that you can apply for.  If not ask how other learners pay forthe course.
2. Use the ‘funderfinder’ database available in the Careers Service to search for grants and bursaries.

Things to be aware of before deciding to take out a PCDL

• Think realistically about the course you are considering.  How likely is it to enhance your employability or earning potential?  Is this benefit worth the expense of the loan?
• What will you do if you are unable to find a job straight after completing the course – how will you start making loan repayments?
• It is your responsibility to check the suitability of the course, if you leave part way through you are still liable for the loan.
• It is your responsibility to check the trustworthyness of the learning provider, it they go out of business part way into your course you are still liable for the loan.
• If you are on benefits check in advance whether taking out the loan is going to affect your entitlements.
• You are not guaranteed to be successful in a loan application.  The bank will look at your case individually.
• Consider whether you are going to be able to afford repayments, if you run into difficulties you should contact the bank straightaway.  Failing to meet payments will damage your credit rating.
• You are free to transfer the debt to a different loan product with a better rate of interest at the end of the interest free period.  Investigate alternatives so that you get the best deal.

Visit the website for more information on PCDLs.