Paying back your student loan early, whether it’s a government loan or a Future Finance loan, can reduce the overall interest you end up paying, enhance your credit score and put you in a great financial position for the years ahead.

The current rules on government student loans state that you’ll start repayments in April four years after the start of your course, or the April after you finish or leaver the course. You’ll only have to make those repayments if your salary is at least £21,000 a year, in which case 9% of what you earn above that amount will be taken by your employer and paid back to the government.

But that doesn’t mean you can’t make repayments earlier than this. You might find you earn a good amount of money during a summer break and want to reduce your debt by making a one-off repayment on your loan. That’s fine.

Don’t get hung up on salary

You also don’t have to be earning £21,000 to make repayments. If you can afford it and you’re on a wage of, say, £20,000 a year and living back at home, you might want to repay £100 a month to chip away at that loan debt.

And if you’re lucky enough to be on a wage substantially higher than £21,000 it could make sense to increase your repayments, so it’s not just the 9% minimum you’re repaying. Again, this could reduce your debt burden quicker and, most importantly, reduce the total amount you end up paying back.

With all these scenarios, the sooner you’re able to pay back the full loan amount and the interest you owe, the sooner you’ll be free of the debt. Making regular repayments and repaying early can also be good for your credit history and credit score.

Always remember though, if you have other debts, it might be better to pay those off early first. A credit card or overdraft could be accruing much more in interest than your loans. It might make more sense to clear those as your main priority.

Flexible loan repayments

With Future Finance loans you make lower monthly repayments straight away. This helps you chip away at your debt from the start and help build your credit score. The larger monthly repayments then kick-in after you’ve graduated. But you can take certain 3-month repayment breaks during your loan repayment period.

As with the government student loans, you can always make bigger repayments than scheduled, whether it’s a one-off payment or an increase to your regular monthly payments, to effectively reduce the total amount you end up paying back.

To make an additional repayment on your government student loan, you can pay online to the Student Loans Company with a credit or debit card. A minimum of £5 applies and if you use a credit card there’s a 1.5% charge. Or you can set up a direct debit or standing order with them.

If you want to make an early repayment on your Future Finance student loan, give us a call on +44 (0)20 3743 8700 or drop us an email at and we’ll talk you through your options.