Zakat on student loans
In the name of Allah, the most Beneficent, the most Merciful.
Answer
There are two possible situations of whether you will deduct the amount of the student loan or not in calculating the zakat:
- As you are not earning £15,000.00 at the moment, you are not liable to make any payment to the student Loan Company. In this situation you will not deduct the student loan from your zakatable wealth at the end of the year.
- If you are earning more than £15,000.00 and you are also being obliged to pay the student Loan Company, then only the annual instalments will be deducted from your zakatable assets. (Jadeed Fiqhi Masaail p.213 v.1)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham