Tuition fees can exceed what government student finance covers. A Future Earnings Agreement (FEA) is one type of tuition finance where what you repay depends on what you earn after your course. This article explains how FEAs work and how they differ from government student loans.

ClearScore is a credit broker, not a lender. Always make sure you can afford repayments.

What is a Future Earnings Agreement?

With an FEA, a provider pays some or all of your course fees upfront. After the course, you pay a set percentage of your income each month while your income is at or above a minimum threshold, up to a maximum number of payments and a maximum total amount.

An FEA is a form of regulated credit. It has a cost, and providers publish a representative APR.

In the UK, FEAs are offered by StepEx through StepEx Lender Ltd, which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 824928).

StepEx works with partner education providers, including Cambridge and London Business School; and the terms (percentage, threshold, number of payments and maximum repayable) can differ from course to course.

This article doesn't cover the whole market, and other forms of finance not mentioned here may be available.

Always make sure you can afford repayments.

Example: StepEx's published representative example

When we checked StepEx's website on 1 October 2026, it showed this representative example for an undergraduate course at the University of Buckingham:

• Course fee contribution: £12,950 (including a £200 upfront contribution paid by the student)

• Amount financed: £12,750

• Income share: 6.5% of gross monthly income, payable only while your evidenced monthly income is at or above £1,750 (£21,000 a year)

• Maximum number of repayments: 120 monthly repayments, within a period of up to 180 months

• Monthly platform fee: £10

• Charge for credit: £13,750

• Total amount payable: £27,700

• Representative 38.5% APR

As an illustration based on these terms, someone earning £1,750 a month would pay £113.75 a month (6.5% of £1,750), plus the £10 platform fee. Terms for other courses and providers will differ. Check the representative example for your specific course before applying.

Eligibility and acceptance are decided by each provider and depend on its own criteria and checks. Checking your eligibility does not guarantee that you'll be accepted.

Who can apply?

StepEx says its finance is subject to eligibility and affordability checks.

FEAs are primarily available to UK and Irish nationals ordinarily resident in the UK. Some providers also consider EU nationals, typically requiring Settled or Pre-Settled status under the EU Settlement Scheme. For example,  Cranfield School of Management's StepEx page states that FEAs there are only available to UK or EU passport holders with a UK or EU bank account, and that funding is limited. Criteria vary by course and provider, so check the requirements for the course you're considering.

Having a government student loan doesn't by itself stop you from taking out an FEA. If you have both, you would be repaying both at the same time. You can read more about the ways to pay for university.

Always make sure you can afford repayments.

How do FEAs compare to government postgraduate loans?

For courses starting on or after 1 August 2026, the government Postgraduate Master's Loan in England is up to £13,206. In Wales, Student Finance Wales offers up to £19,635 for 2026/27. Where course fees are higher than these amounts, some students use other finance, such as an FEA, to cover the difference.

The main differences, based on StepEx's published example and GOV.UK figures checked on 1 October 2026:

• What you repay on: a government Postgraduate Loan (Plan 3) is repaid at 6% of income over £21,000 a year. In StepEx's example, 6.5% applies to your whole gross monthly income once it reaches £1,750 a month.

• Threshold: the Plan 3 threshold has been £21,000 since repayments began in April 2019. StepEx's example threshold is £1,750 a month (£21,000 a year). Other FEA agreements may use different thresholds.

• Cost: government postgraduate loans charge interest at RPI plus 3% (currently 6%, as capped). StepEx's example has a fixed charge for credit and a total amount payable of £27,700, with a Representative 38.5% APR.

• End point: a government Postgraduate Loan is written off after a set period if not repaid (depending on which repayment plan you're on). An FEA ends when you reach the maximum number of payments, the maximum total, or the end of the repayment period (up to 180 months in StepEx's example), whichever comes first.

You can read more about paying off a government student loan.

FAQs

Is the total I repay capped?

Yes. Each FEA sets a maximum total. In StepEx's example the total amount payable is £27,700 on £12,750 financed, including fees. Cranfield's StepEx page says the cap is typically 200% of the amount borrowed. Higher earners are more likely to reach the maximum.

When do repayments start?

After your course, once your evidenced income is at or above the threshold in your agreement. Payments stop for months when your income is below it.

Are FEAs only for postgraduate courses?

No. For example, at Buckingham University, Future Earnings Agreements are available to eligible UK students on all undergraduate courses.