Student Loans in Islam

There are other ways of acquiring knowledge that going to uni and you do not have to go uni straight after college - you could save up a few years, fugure out what you really want to do and then go uni when you can pay for it.

Does the dying without paying the debt off not count since your debt will be written off in 30yrs time?

or on death. standard clause.

[quote=Ocean]
EDIT: However, it would be a different story if you could afford it all and yet you get a loan. Just for the sake of it. Now that's naughty.[/quote]
Why would anyone do that? whats the point, you're gna have to pay them money back anyway

Just to be clear in a *normal* loan, paying in interest is also wrong, right?

my sister had a pretty good job and got her loan and put it in a high interest saving account, then paid it all off at the end of her course and made a tidy (and by 'tidy' i mean dirty) profit.

but she aint Muslim so its irrelevant.

also, isnt the student load interest-free (apart from inflation).

One of the (minor) signs of the Day of Judgement is that ribah will be so much and everywhere that even people who try to avoid it will be touched by its dust.

[quote=Ya'qub]

also, isnt the student load interest-free (apart from inflation).[/quote] Inflation + 3% - I think this might be new for 2012+ as most people say/seem to think there isn't interest on it.

[quote=Ya'qub]
One of the (minor) signs of the Day of Judgement is that ribah will be so much and everywhere that even people who try to avoid it will be touched by its dust.[/quote]
:/ If we can't help it, does that mean we'll be forgiven?

im pretty sure there's interest on it. read that on some site recently.

and as a true Lilly (well..pretty much the only...) I aint going uni primarily because of the cost.

nope, i cany cough up 9,000.

plus, it IS a debt, for the next thirty years. does that mean ya canny go hajj? hmm...

i dont like debt. i dont like the word itself...

my sociology teacher somehow came to the conclusion that marrying me would get me into uni, im not sure how the reasoning went...

well..back to main question. scholarly opinion anyone?

[quote=Lilly]

plus, it IS a debt, for the next thirty years. does that mean ya canny go hajj? hmm...
[/quote]
Good Q.

Interest rates on loans

For full-time students, interest is charged at the rate of inflation (RPI – Retail Price Index) plus three per cent from the date you take out your loan to April 2016 after you’ve finished studying.

From April 2016 you’ll be charged:

the rate of inflation if you earn £21,000 or less
the rate of inflation plus up to three per cent if you earn between £21,000-£41,000
the rate of inflation plus three per cent if you earn over £41,000
Your repayments will be deducted automatically each month from your pay.

From the student finance website

[quote=Lilly]

my sociology teacher somehow came to the conclusion that marrying me would get me into uni, im not sure how the reasoning went...

[/quote]

Isnt that..um..kinda...um..against... the law?

As for the loan thing...the shaykh that I went to see gave out his email if anyone had any questions. Feefs, Lilly..interested??

what was his answer on this matter?

[quote=bilan]

As for the loan thing...the shaykh that I went to see gave out his email if anyone had any questions. Feefs, Lilly..interested??[/quote]
Which shaykh was that? And sure, I'll try sending an email

He didnt talk about this topic, just gave out the email if people had any questions (or comments) that couldn't be answered at the Q&A.

@feefs: shaykh Khalid Yasin

Does anyone actually know what the interest rate is for the student loans from 2009 onwards?

i just reread my post after TPofS's answer. not marry ME, Him! plus its a HER. i meant. she wants to marry me OFF to someone!! YIKES!

Answer 1:

Bismihi Ta’ala

Student loans are not permissible and are the same as other interest based
loans, just defined differently. Hence it would not be permissible for you
to take out a student loan. You should look for other halaal means, I.e.,
halaal loan, or part-time work to cover your student fees.

And Allah Knows Best

Mufti Zubair Dudha
Darul Ifta
Islamic Tarbiyah Academy

Yes a part-time job will get me £27,000!

Can you get such loans from the Islamic banks? (is that a stupid Q)

The only problem is I would actually have to pay it off asap and all of it, unlike the student loan.

That is a stooopid answer IMO.

Its like an arab price saying "women drive? why do they need to when they can pay for a driver?"

Not in the real world, and Islam is very much for the real world.

Not really a stupid answer. Just telling it how it is. You gotta look for alternative means.

[quote=Foysol89]Not really a stupid answer. Just telling it how it is. You gotta look for alternative means.[/quote]

Ive seen so many rulings on things like this.

Also, I dont see how you could get a halal loan from an Islamic bank for this.

for cars, houses etc they buy a percentage of the object and you rent that part from them and buy back the rest from them gradually.

but they cant really do that for ur education (or maintainence).

This is going to be more of an issue with uni fees rising ridiculously in the next couple of yrs

[quote=Foysol89]Not really a stupid answer. Just telling it how it is. You gotta look for alternative means.[/quote]

They're not telling it how it is - the reality is not many people will be able to afford paying the tution and living costs without resorting to student loans.

They are accomidating for the 1% of the people who can and ignoring the vast amjority who can't - and that is stupid.

You have to be kidding me.

[quote=Ya'qub]

Ive seen so many rulings on things like this.
[/quote]
Can you briefly explain a few? please

Firstly: Student Loans

• The default is the forbiddance of interest-based loans regardless of whether these loans are for students or otherwise due to it falling under the clear interest that the scholars unanimously agreed, past and present, on its impermissibility. It is incumbent that all efforts are spent in finding permissible alternatives before leaping to the justification of urgency or need.

• In the world of Western Universities, academic scholarships are granted for the outstanding (students) and unable (to afford), alongside work-study opportunities that allow for combining between studying and earning, by which one can avoid falling into these loans. Also, there may be subsidized loans that the nation pays its interest if the student is able to repay all he owes within six months of his graduation. In addition, there are grants provided by some companions and institutions in exchange for employment contracts with it after graduation. It is incumbent that one spends his efforts in (trying) all this.

• If all of these are inexistent, and the interest-based loans are the only way to facilitate the beginning or continuation of a university education, or the only way to secure the Muslim communities need for what cannot be done without of professions and expertise, then this is considered an urgent necessity that removes the sin even though the ruling of impermissibility remains. This is upon the condition that the one forced to this isn’t an aggressor nor transgressor, and this is by giving the urgent need its proper estimate, and by continuing to search for a permissible alternative and breaking free of these interest-based loans when one is first able to do so in order to minimize the interest amount paid as much as possible. We emphasize the need to return to the people of Fatwa (i.e. qualified to passed a juristic opinion on Islamic Law) to estimate these needs and urgencies. It isn’t correct that for just anyone to assume the responsibility to do this, or to measure his need on the need of others.

http://www.amjaonline.com/en_d_details.php?id=322

I was actually reading the other day in that book that in the ottoman empire - which had rulings based on hanafi fiqh, they considered interest and riba to be different things.

Like...

[quote=You]I was actually reading the other day in that book that in the ottoman empire - which had rulings based on hanafi fiqh, they considered interest and riba to be different things.[/quote]

they also borrowed huge sums of money from western powers, at interest, to build a new palace in Istanbul - bankrupting the Ummah in the process.

One palace doesn't bankrupt a state.

I think they would have survived if some arabs had not revolted and joined the British in WW1 (but after the coup by CoUP they were not the best place to be anyway).

See if student loan is haram, the knowledge I get would be haram, what I use it for would be haram, the money I make from my career would be haram and then my prayers wouldn't be accepted!

Muslim students could be forced to abandon hopes of a university place under the new fees and loans regime which will come into place next year.

The Government's plan to increase tuition fees and implement higher rates of interest on loans means many young Muslims will be deterred from applying to university until a scheme is put in place that allows them to finance their degrees in a way that complies with Islamic law.

Under some interpretations of Islamic law, the acquisition of loans – particularly those which accrue interest – is forbidden. The new system requires graduates who earn above £21,000 to pay interest levels of up to 3 per cent above inflation. The National Union of Students (NUS) has warned it could be two years before a suitable system is arranged

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