Submitted on Friday 13th April 2018
Published on Wednesday 18th April 2018
Current status: Closed
Closed: Thursday 18th October 2018
Signatures: 65
Make interest on student loan repayments tax deductible.
Currently, the interest we pay on student loans is not tax deductible. Every year, 6.1% interest is charged on our student loan balance. Assuming we finish university £40,000 in debt, we have £2,440 a year of interest payments to make before we are even able to reduce our principal balance.
Under the current system, you would have to earn about £52,111 just to be able to pay every year the interest on your balance (assuming you have £40,000 debt). The government then charges you 40% tax on your interest payment, costing you £976 a year. Assuming you earn £52,111; you are paying the government £3,416 (976+2440) a year for borrowing their money (without decreasing your balance). Corporation have tax-deduction on their interest payments, so should students.
You can't sign this petition because it is now closed. But you can still comment on it here at Repetition.me!
3.145.96.163 Fri, 15 Nov 2024 08:38:35 +0000
