Closed petition Make Student Finance repayments tax deductible

Closed on 23 September 2023

A tax deduction for Student Finance repayments would ease graduates' financial burden. High-interest rates and long repayment periods make it harder than ever to live. Deducting repayments from taxable income would reduce yearly amounts owed, providing immediate relief and simplifying repayment.

For example, a recent graduate earns £30k annually with a student loan balance of £50k at 5.4% interest rate. Presently, they must pay £243 p.a. (9% of income over £27,295). If student finance repayments were tax-deductible, they could deduct £243 from their taxable income, saving approximately £49 per year (20% basic tax rate).

Over 30 years, they would save around £1,500, which they could use for living expenses or savings, or to reduce their overall student loan balance.