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What is a Future Earnings Agreement?

A Future Earnings Agreement (FEA) allows you to defer the cost of your qualification until you are earning above a minimum income threshold.

This will be repaid in future by sharing a small percent of your salary for a defined period up to a maximum amount, so risk is shared, and repayments are more affordable. If your salary goes down or is less than you expect, you will repay less, if your salary is more than you expect you will pay more. The beauty of this is, because the total amount you repay is capped, if you pay more than you expect you may pay your loan off earlier, but if you pay less than you expect you won’t have to make any extra repayments.

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Capped cost of finance

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Affordable repayments

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Limited number of repayments

You can trust us

There are no other providers of Future Earnings Agreements in the UK. Similar models exist in other countries provided by Braintree in Germany, Purdue University and others in the US and Lumni in Latin America.

The key difference between StepEx and these providers is that StepEx is the only one fully regulated by the UK’s Financial Conduct Authority. This means that customer’s know they are being treated fairly, are provided all information transparently and that the company is operating to some of the world’s highest financial standards.

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Representative Example

Jane needs £20,000 of funding to complete the final year of her MBA, which she graduates from in late 2020.

StepEx estimates her income based on her characteristics, and makes her an offer for £20,000 in return for 7.4% of her gross income over 5 years, Jane accepts this offer.

Jane begins her first job after graduating on Jan. 1st, 2021, and she begins

Jane's Income
Repayments @ 7.4% share of income

NB: Numerical data has been rounded for simplicity. For a more detailed breakdown of repayments and reporting, see the full example


Image Graphic of Repayments

This product does not have a fixed APR. Instead both repayments and the total amount to be repaid is linked to the amount of income earned. This means that if you earn more than StepEx estimated, your APR will be higher, and if you earn less than estimated your APR will be lower. The table below shows the probability that the APR a representative borrower would actually repay is double, or half the representative average APR.

Less than half (4.5%) of the stated APR
Less than stated APR
Greater than twice (18%) the stated APR

Based off a representative example of Postgraduate Certificate in Education (PGCE) graduates from a range of UK universities, drawing on data from 2006 to 2016. For graduates of different degrees, these values may be higher or lower. The maximum you could repay is 3 times the amount of credit initially borrowed.

To see how much you of your future earnings you can invest today

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This website is made available by Step Exchange Limited. Registered office: 1 Rookery House The Street, Crookham Village, Fleet, England, GU51 5RX. Registered in England and Wales with company number 10880923. All information in relation to loans is issued by StepEx Lender Limited, a wholly-owned subsidiary of Step Exchange Limited. StepEx Lender Limited is authorised and regulated by the Financial Conduct Authority as a consumer credit lender (Firm Reference Number 824928). Registered office: 30 Strand, London, England, WC2R 1ES. Registered in England and Wales with company number 11640058.