Even though new students cannot apply for a PCDL anymore, if you had applied for one before 2019, you’ll continue to receive them as normal. This also means, you’re going to have to make repayments for your loan as well.
Professional and Career Development Loans need to be paid back in full, however, you only start repaying the loan (plus interest) one month after leaving your course. You have to repay your loan even if you don’t complete the course or your course provider goes out of business.
While enrolled on your course, the Government pays the interest on the loan for you, so you won’t be charged any interest until one month after you finish.
From then on, the bank will charge you interest at a rate of 9.9% per annum on your outstanding balance. The interest charges will be added to your loan balance quarterly until the loan is repaid in full.
Your bank should have already specified what the actual interest rate is when you first applied for the loan. If you still have any questions, you must call the bank and make sure there aren’t any surprises later.
Repayment period
Your first monthly repayment will be due in the second month after your course has ended. These monthly repayments will need to be made by standing order.
Loans can be repaid over one to five years, using 12 to 60 monthly repayments. By spreading your loan over a longer term, your monthly repayments may be lower, but bear in mind that the overall cost of borrowing may be higher.
You may be able to drefer repayment for up to 17 months, but only in exceptional circumstances. You must discuss this with the bank before you start the repayments. Remember that you will continue to accrue interest on the loan all during the time that you defer repayments.
Early repayment
Early repayment of a PCDL is possible. However, the bank may charge you one or two months of additional interest, depending on the length of your loan agreement.