Advanced Learner Loan explained: how a £0 upfront hair or beauty course actually works
Who can get an Advanced Learner Loan, how to apply, what you repay and when, and the interest most people forget to ask about. Plain English, current figures.
Most of the Level 3 and Level 4 diplomas at The Hair and Beauty College can be paid for with an Advanced Learner Loan. You pay nothing when you enrol, Student Finance England pays the college, and you repay later through your wages, only once you earn above a set income. Here is how it works in practice, with the numbers that matter.
What the Advanced Learner Loan is
It is a government loan that covers the course fee for approved Level 3 to Level 6 qualifications in England. It is designed for adults, so it works differently from the loans people take out at university:
- No credit check. Your credit history is not looked at, your household income is not assessed, and the loan does not appear on your credit file.
- Fees only. It pays your course fee straight to the college. It is never paid to you and it does not cover living costs.
- All or part. You can borrow the full fee or just part of it (minimum £300) and pay the rest yourself.
- More than one. You can hold up to four Advanced Learner Loans over your lifetime, each for a different qualification.
Who can get one
You need to be 19 or over on the first day of your course, and you must normally have lived in the UK for the three years before the course starts. UK and Irish nationals qualify, as do people with settled status and several other residency categories. If you are not sure where you stand, ask us before you apply and we will check.
Your course has to be on the approved list. At HBC that means our funded diplomas: Women’s Hairdressing, Barbering, Nail Technology, Make-Up Artistry, Beauty Therapy Treatments, Combined Beauty Therapy Skills, Beauty Therapy Services, Massage Therapy, Advanced Beauty Therapy, Permanent Hair Removal and Skin Rejuvenation, and Managing a Salon Business. Short CPD days and the Level 2 Awards and Certificates are not loan-eligible.
What it costs at HBC
Most of our Level 3 diplomas are £3,345. The Level 3 Diploma in Combined Beauty Therapy Skills, which is the biggest qualification we run at 84 credits, is £5,421. The loan can cover the whole amount, so the figure you pay on enrolment day is £0.
One thing that surprises people: your monthly repayment does not depend on how much you borrowed. It depends on what you earn. A £3,345 loan and a £5,421 loan cost exactly the same per month at the same salary. The loan size only changes how long you keep paying.
How to apply, step by step
- Choose your course and confirm your place with us. We check the course is loan-eligible and agree your start date.
- Complete the short loan application form. Our funding partner then emails you a Learning and Funding Information Letter. Student Finance England will not process an application without it.
- Apply to Student Finance England online. Go to the Advanced Learner Loan page on GOV.UK. Have your letter, your National Insurance number and your passport details to hand. If you have used Student Finance before, use the same login.
- Wait for your approval letter. Online applications are usually confirmed in about two weeks. Let us know when it arrives.
- Start your course. After your first two weeks of attendance, we confirm you are on the course and Student Finance England pays your fee directly to the provider. You never handle the money.
Apply as early as you can. Applications slow down in busy periods, and your place is not fully secure until the loan is approved.
How repayment works
You start repaying the April after you finish or leave your course, and only once your income is above the repayment threshold. For the 2026/27 tax year the threshold is £29,385 a year, which is about £2,448 a month. You repay 9% of whatever you earn above that figure, never 9% of your whole salary.
| Annual salary | Amount over the threshold | Monthly repayment |
|---|---|---|
| £29,385 or less | £0 | £0 |
| £30,000 | £615 | about £4.60 |
| £32,000 | £2,615 | about £19.60 |
| £35,000 | £5,615 | about £42.10 |
| £40,000 | £10,615 | about £79.60 |
Repayments are taken automatically through your employer’s payroll, like tax, so there is nothing to set up. If you are self-employed, they are collected through your Self Assessment tax return. If your income drops below the threshold, repayments stop until it rises again. Any balance still owed 30 years after the April you were first due to repay is written off.
Interest: the bit people forget to ask about
The loan charges interest from the day the first payment is made to the college, not from the day you finish. The rate is linked to the Retail Prices Index (RPI). On the current terms it ranges from RPI up to RPI plus 3% depending on your income, with a cap applied by the government. Because repayments are set by your salary and not by the balance, interest does not change what comes out of your wages each month. It changes how long the loan takes to clear, up to the 30-year write-off.
You can make extra payments at any time directly to Student Finance England, with no early repayment penalty.
Help with the extra costs
Once your loan is approved you may be able to apply to the Advanced Learner Loan Bursary Fund for help with childcare, travel, course materials and kit, or classroom support if you have a disability or learning difficulty. The bursary is applied for through the training provider rather than Student Finance, so ask us and we will point you to the right form.
Is it the right choice for you?
The loan suits people who want to retrain without finding thousands of pounds upfront, and who are comfortable with a small payroll deduction later if their earnings go above the threshold. It is not the only route. Every funded diploma at HBC can also be paid for privately, by card, bank transfer or a monthly plan, and the course is identical either way. Taking a loan is your decision, and nobody at the college will push you towards one. If you would like to talk through your situation, call us or send a message and we will walk you through it.
See the funded diplomas
Eleven Level 3 and Level 4 diplomas in hair, beauty, nails, make-up and aesthetics, all loan-eligible, all delivered at 78 Bridge Street, Warrington.
View course details Prefer to talk it through? Call 01925 747371 or send us a message.Questions people ask
Do I need a credit check for an Advanced Learner Loan?
No. There is no credit check, your household income is not assessed, and the loan does not appear on your credit file.
When do I start repaying?
The April after you finish or leave your course, and only once you earn over £29,385 a year. You repay 9% of what you earn above that figure, taken through your wages like tax.
Does the loan charge interest?
Yes. Interest is charged from the day the loan is paid to the college and is linked to RPI. It does not change your monthly repayment, which is set by your salary, but it does affect how long the loan takes to clear. Anything still owed after 30 years is written off.
Can I get a loan for a one-day CPD course?
No. Advanced Learner Loans only cover approved Level 3 to Level 6 qualifications. At HBC that means the funded diplomas. CPD days and Level 2 Awards and Certificates are paid for privately, with interest-free splits and monthly plans available at checkout.
How long does approval take?
Online applications to Student Finance England are usually confirmed in about two weeks. Apply as early as you can so the loan is in place before your start date.
Advanced Learner Loan figures are from GOV.UK and correct at the date of this post. Interest is charged from the day the loan is paid out and is linked to RPI. You repay 9% of what you earn over £29,385 a year. Taking a loan is your decision; please read the GOV.UK terms and consider every way of paying before you apply.
