career development loan

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Just out of interest, is any one here paying for a home study computer course via a career development loan? Im in the process of saving up to do an IT course, as I thought taking a loan out may be a bit risky especialley if say I lost my current job or something and couldnt pay it back. From what the computeach bloke told me I would only have to pay 20% to start with and then nothing at all for 2 years is this correct? there are no additional hidden costs? I currently earn just over 11k a year, my job isnt safe, like many others though I have been working for the company a year. Would it be safe to take out the loan for someone in my current position. I am serious about training for an IT career and want to work in this field.

 

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You do pay a deposit (20% rings a bell) and you then have 2 years before you need to repay (I believe you can have deferrments under certain conditions, but these are quite strict, I believe).


I can't remember off-hand what cover you get if you lose your job during the period of the loan - it might be best to read the small print closely and speak directly with the bank/institution offering the CDL.

I was fortunate enough to have an old ISA plan I didn't know about that covered paying off the loan in one go, but I would strongly recommend going over the repayment figures before committing, and I stress - do this yourself or with trusted company or an advisor, NOT the bloke(ess) in your living room who's desperately trying to get you to sign up for the course

HTH m8

 

I can't remember off hand the scenarios if you lose your job or suffer disability or similar, will try and find my paperwork and let you know. You pay 20% of the course fee upfront, then the rest is paid by the CDL. You can choose how long before repayments start, but typically it's 2 years. You do accrue interest in this time though. I borrowed £4,000 and will pay back around £4,500 over two years starting late 2006 (~£190 a month). If you can live with/budget for these kind of figures, then go ahead. Remember certification is no guarantee of a job (just as my degree was no guarantee of work), although commercial experience is a massive asset if you have it. I also recommend you take everything the salesman says with a pinch of salt.

 

I'm doing course with computeach using a career
development loan and both the guys above are correct,
20% up front then the rest in two years.

 

Has this changed, Gaz ? 3-4 years ago when I had a CDL, the interest was paid by the Government. You then paid interest on the loan after the two years, as you were repaying it.

Is this no longer the case ?

 

You may well be right there Jak. I really must find that paperwork! Certainly though interest is payable at least during repayments.

 

yep me too, i paid 20% upfront and the rest in 2 years. And what im doing is putting £50 away each week so when i finish i will have £5,200 in the bank to pay off the loan in full.

But like the guys said above

*quote from CDL leaflet*



The DfES(Department for Education and Skills) pays the interest on the loan for the period of CDL-supported learning and for up to one month afterwards.

You then repay the loan to the bank over an agreed period (between 12 and 60 months) at a fixed rate of interest.

If you complete the course, or stop training before the agreed date, the repayment holiday will end up to one month after your last day of training.

You may be able to postpone the start of your repayments if, when you are due to start repaying:

* you are unemployed and claiming related benefits (including credited National Insurance contributions)
* you are employed and you or your partner are in receipt of one or more of the following benefits: Income Support, Housing Benefit, Council Tax Benifit or Working Tax Credit.
* you are taking part in a Government Training programme and in receipt of Training Allowance; or
* you have to attend your course longer than expected (due to ill health or other special circumstances)

Providing any of the above conditions continue to apply, you may be able to postpone the start of your repayments for a maximum of 17 months.



*END quote from CDL leaflet*


Hope that clears a few things up for you

Stu

(edit to tidy up)

 

Yea, I thought about this CDL loan because two of my friends had one. They never had to pay the 20% deposit because they were unemployed at the time.

I think I am going to get a A+ first (i dont think that it will be too expensive) then apply for a few a jobs. Then once, if I do get a job that is, i get a job go for a MCSE or something along them lines.

Matt