A late summer rush on FE loans predicted by the government after a slow uptake earlier in the year has materialised.
But there were still almost 5,000 fewer applications by the end of last month compared to the same time last year.
Figures released this week by the Department for Business, Innovation and Skills (BIS) showed there were 14,850 applications for FE loans in August, of which 11,830 were processed.
It represented a 99.7 per cent increase on the number of applications for the current academic year within the space of a month — from 14,880 at the end of July to 29,730.
That compared to an 82.8 per cent increase of 2013/14 applications in August last year — from 18,975 by the end of July last year to 34,700.
An AELP spokesperson said: “It’s an encouraging jump from July’s figures, but not unexpected given seasonal trends. It will be interesting to see if applications hold up as the year progresses.”
An Association of Colleges spokesperson said: “It’s still early to be sure where enrolments will end up, but we won’t really know until we see the September and October figures.
“Colleges tell us that they are seeing increased enrolments from over 24-year-olds on advanced level courses. With skills shortages in some sectors, the 24+ loan offer is a good one.”
BIS predicted there would be a late summer rush for FE loans after figures released in June showed that there had only been 1,270 applications for 2014/15 courses by May 31, of which 1,230 had been processed.
At the same point last year, there had been 2,916 applications for 2013/14 courses, of which 1,958 had been processed.
A BIS spokesperson said at the time that the previous year’s figure had been higher because “many providers encouraged early applications from learners when loans were first introduced in April 2013 in order to test the system and make sure everything was in place well in advance”.
After the latest figures were published, the National Institute of Adult Continuing Education chief executive David Hughes (pictured) said: “Although the latest FE loan figures show that the number of applications are close to where they were this time last year, it’s essential we understand the impact loans are having on who’s participating in learning and not just the overall numbers of loans.
“In 2012/13, more than 400,000 learners aged 24+ were engaged in level three and four provision.
“However, data published earlier this week shows that between August 2013 and April 2014 only a provisional 52,400 adults paid for their learning with a loan.
“It will be interesting to see whether this reflects a significant reduction in participation or whether individuals and employers are bypassing loans.
“Next month’s Statistical First Release will give us the first clear indication of the impact that loans have had on learner participation.”
A BIS spokesperson said: “We will continue to monitor take-up and work with the sector to help them share best practice on how providers have made loans work for them.”
There is indeed some reassurance in these new figures. Yet the conditionalities and caveats surrounding them must remain of great concern to all those with a stake in 24+ Loans policy and implementation.
Firstly, the hope that a greater degree of provider and learner familiarity, confidence and engagement in this second round will produce a sustained ‘late rush’ to apply for Loans during September is just that: a hope.
And it needs to be remembered that these are figures for applications. Other factors can affect the actual take-up. As the AELP, AOC and NIACE comments indicate, there still remain a number of uncertainties even in terms of sustaining the apparent level of increase in recent months, compared to the 2013-14 patterns.
Moreover, what isn’t mentioned here is that the actual budget allocated by the Treasury (and again, on a ‘use-it-or-lose-it’ basis for this year) has tripled for this current year, over the total made available for 2013-14 — and with a corresponding, although not to be fair not equal, decrease in the Adult Skills Budget.
Thus, even if last year’s disappointing rate of overall 24+ Loans applications and take-up were to remain at that rate of increase so far in this current round, it would leave huge sums unused and un-vire-able up until August 2015.
And that, as David Hughes points out, means potentially huge numbers of 24+ learners not participating. There seems little to suggest that large numbers of them are finding other sources of funding their courses, such as their own cash reserves, or employers’ pockets.
It is puzzling, and worrisome, that providers in particular seem not to be tackling this more consistently in a pro-active and energetic manner. Not to do so seems to pose considerable financial risks to the viability of their 24+ provision at Levels 3 and 4.
And finally, all this does not appear to bode well for a (likely, if as yet unconfirmed) broader and deeper Loans policy and budget, ahead, applying to some 19-24s and Level 2 provision.