Can Unpaid Student Loans Be Deducted from Zakat?

No, you cannot deduct your student loan from your Zakat calculation if you are not currently repaying it. 

In Islamic finance, only debts that are due and payable within the current Zakat year can be deducted from your zakatable wealth. Since a student loan that is not yet being repaid does not meet this condition, it is not considered a deductible liability.

Key Considerations:

• Only Current Payments Are Deductible:
  If you are actively making payments on your student loan, you may deduct only the portion that is due within the current Zakat year.
• Future Payments Are Not Deductible:
  Any amount of the loan that is scheduled for repayment beyond the next 12 months cannot be deducted when calculating your Zakat.
• Long-Term Debts Follow the Same Rule:
  Like student loans, long-term debts such as mortgages or business loans are not fully deductible. Only the portion due within the Zakat year can be subtracted from your total zakatable assets.

This principle ensures that Zakat remains an obligatory act of charity for those with surplus wealth. It also allows reasonable deductions for immediate financial obligations. To ensure accurate calculations, consider using a reliable Zakat calculator.

And Allah knows best!