What is a Career Development Loan? And how to get one.

Recent graduates are in a uniquely tough position when it comes to further study. On the one hand, for many students who have just received a degree it is an entirely good idea to consider a postgraduate course to avoid the competitive recession-hit job market and to use the opportunity to make themselves even more employable. Yet on the other hand, it is unsurprising that many young people are anxious when it comes to the financial implications of further study - especially in a climate that is treating savers more kindly than borrowers.

If you are eager to embark on further study after three years of university, once you have decided on exactly you want to do you should then consider a career development loan. Career development loans (sometime referred to as professional loans) are offered by certain banks such as Barclays, RBS and Co-Operative and are specifically designed to give you the finance to aid your career or professional life.

The loans are often used by individuals who want to do a traditional university masters course, but career development loans can also be used to do another BA in a different subject, distance learning courses, vocational training and specialist courses, and diplomas - it's really up to you, as long as it is clear that such study will be seen to be pushing your career forward. The money should then be used to go towards course fees, living expenses, and other costs including books, tools and transport.

Career development loans differ from regular loans in a number of ways. First off, the amount you can usually borrow ranges from £300 to £10,000. Additionally, while you are studying the interest (average rates hover at around 9.9 percent) incurred is paid by the Learning Skills Council and continues like this for a month after you have finished - giving you a little bit of time to find work before you must start paying it back.

It is also important to remember that you must be over 18 to be granted a CDL, as well as a UK resident - and it is worth applying early because lenders have a certain amount they can offer and they can be fairly selective with who they lend to. It is worth seeking advice from a careers adviser or your bank before deciding on whether a career development loan is the best option for you.

Sarah Maple is writing about adult education and degree courses.