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Old 1st February 2002 | 02:23
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clear prop!!!
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Career Development loans can be used for modular training. However, you need to get all the training providers set up at once. At least the ones for which the £8.5k max will be used. The reason for this is that you can only have one CDL on the go at any given time. It’s a bit of a hassle, as the Banks don’t understand the concept of multiple training providers or modules for what is in effect one course. If you persevere you should have no problem.

Now £8.5k only scratches the surface of your training costs. As a result the Bank providing the CDL will want to know where the rest of the money is coming from and may want to see evidence that finance is available for the full course cane be completed, to the point where you are employable and can pay the loan back!

Having said all that the interest rates charged on a CDL are scandalous. From memory they are about 11.5% !!! Yes you do get a holiday on payment but it’s still a very expensive deal. So much for the Government trying to encourage further education. The Bank’s make a fortune on these loans for which the carry no risk as they are underwritten by the Government. On top of the high interest you will find the odd 'account maintenance charge' creeping in as well.

The penalties for early redemption are also onerous. I have one and wish I hadn’t!

Try to find another method of borrowing if you can.
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