The Department for Education has confirmed that the Lifelong Learning Entitlement (LLE) will replace the current Plan 2 tuition fee loan system and the advanced learner loan from January 2027. Applications open in September 2026 for the first courses and modules starting from January 2027 onwards.
The LLE is one of the biggest changes to English higher education funding in over a decade. Instead of one student loan tied to a single three- or four-year degree, every eligible learner will hold a single lifetime entitlement that can be drawn down over their working life — across full degrees, short modules, technical qualifications and career-change retraining.
How Much It Provides
New learners receive a tuition fee entitlement worth up to £39,160 — equivalent to four years of full-time study at the maximum tuition fee for the 2026 to 2027 academic year. Maintenance loans for living costs remain available for in-person attendance, subject to the existing means-tested rules.
The entitlement is held individually and follows the learner — not the institution. If you use part of it for a Foundation Year and Bachelor's degree, the unused balance stays available for postgraduate study, conversion courses or modular upskilling later.
What Courses Are Covered
The LLE significantly expands what counts as fundable study. Eligible options include:
- Full courses at Levels 4 to 6 — Bachelor's degrees, Foundation Degrees, HNDs and Higher Technical Qualifications (HTQs) - Postgraduate initial teacher training and pre-registration healthcare qualifications - Integrated Master's degrees (where the postgraduate year is part of an undergraduate programme) - Foundation Years attached to a Bachelor's degree - Individual modules from HTQs and Level 6 qualifications in priority subject groups — Computing, Engineering, Nursing and other shortage areas
Modules must total at least 30 credits per year to qualify for support. Learners can draw down up to 180 credits per academic year across multiple courses or institutions.
Who Is Eligible
The LLE follows existing higher education student finance residency and nationality rules. Tuition loans are available to learners up to age 60 at course start, with maintenance support extending to those aged 60 and over. Courses must be delivered by providers registered with the Office for Students (OfS).
International students on Student Route visas are not covered by the LLE — it remains a domestic student finance product, available to home students and to settled-status residents who meet the existing Plan 5 residency tests. International applicants continue to pay overseas fees and to fund their studies privately or through scholarships.
Repayment Terms
The LLE uses the Plan 5 repayment model already in place for English undergraduates starting from 2023. Key terms:
- Repayments begin once you earn over £25,000 per year (£2,083 per month) - Repayment rate is 9% of gross income above the threshold - Outstanding balance is written off 40 years after the April after your course ends
Interest is set under the new 6% cap announced earlier in 2026, which replaced the previous RPI-linked formula.
Why It Matters
For UK home students choosing a course in 2027 or later, the LLE removes the artificial divide between a "full degree" and "modular upskilling" — both are now funded from the same pot. A learner can complete an HND now, return five years later for a Level 6 top-up, and study a postgraduate module ten years after that — all without applying for a separate loan each time.
For pathway colleges and our partner universities, this is significant. The credit-based fee limits and modular eligibility open the door to genuinely flexible study patterns — January, April and June intakes become more meaningful, and shorter qualifications gain access to student finance for the first time.
Transitional Arrangements
Students who start a course before 1 January 2027 will continue under the current Plan 2 or Plan 5 system, with no need to switch. Advanced learner loans for non-OfS providers will continue to be available on extended terms through to the 2029 to 2030 academic year, giving the further education sector time to transition.
If you are a UK or settled-status student weighing up whether to start a course in September 2026 or wait for the LLE to launch in January 2027, the answer depends on your circumstances. Talk to an AEN advisor — we will check your eligibility under both systems and help you compare which option leaves you with the most flexibility for the rest of your working life.
