Does it actually affect their development at all?

If it doesn't I don't see the point in a big team sending out youths to lower clubs with sucky training facilities.

Maybe an experience stat should be added? hidden. most likely.

It does help, usually best when they are playing with your club. I have had Torje play away on loan and his development was certainly far better compared to a game when I left him sitting in the U19s.

Thought I'd bump this up.

Anyone else have any feedback on this?

Helps more than anything.

Hey, blatantly - I think it helps a ton to get them experience, but I always try to ensure that I'm loaning them to clubs with good facilities and coaches too.

A set of links re: player development