Please note: The answers on constitute friendly advice rather than fatwas. Where relevant, we translate the opinions and fatwas of respected scholars and present them in our answers.

Is it permitted to use the student loan interest deduction?

salamu alaykom, i know that student loans are haram but i have one that I’m paying off from when I didn’t really know it wasn’t okay. my question; on taxes in the U.S. you can put down the interest you paid on student loans as a deductible on your tax return filing and get some of it back, is this also haram? even though id be getting back interest that i paid? or is it okay to do? thank you in advance.

Alaikumassalam wa rahmatullah,

The student loan deduction is the government paying back some of the interest, which actually makes the loan less “evil” since it reduces the interest. I see nothing wrong with benefiting from the deduction, it is like any other government-paid benefit (such as certain university scholarships).

And God knows best.

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