Student Loans.. (uk)

[Urban]

It has come to my attention recently that student loans from the LEA is considered haram because you pay back more than you initially borrowed, not because of interest, but inflation.

I've searched online for answers from scholars and they're mixed, some claim it's acceptable out of necessity, and others say it's a form of riba and therefore haraam. (I've checked various threads on ummah.com but also these pages, one, two.

 

I'm in my third year of uni at the moment and already £16k in debt with one more year to go, but realizing that I might have paid for my education so far with money that's haraam is deeply upsetting. Not only that, my clothes are bought with that money and also my food. I wouldn't be taking this loan if I could fund my way through uni of course, but is that really a valid excuse? I don't know what to do.

 

Anyone else on the same boat?

[STOIC]

I think interest is an interest. Don’t worry we will present our case to God about why in the world we took all those education loans. God didn’t bless my family with a Oil-well or a even a Pirate cousin.So i think I'm justified to have all the Zeros behind my AES forms. Here in the USA the federal government sets the interests rates for our student loan. Understanding how your interest rates accrue is an essential step in understanding how your loan works. For example in the US the government pays your accrued interest during the time you are in school, but this only applies to the Subsidized Stafford loan. Now there is a catch there is only so much the government can give you as a subsidized loan. This forces mostly the graduate student to apply for Graduate Plus loan, which though the government sets the interest rate you are still accruing interest while you are in school. If for any reason the Stafford and Graduate plus are not enough then you can apply for a private loan from the bank, which by the way their interest rate will break your back! Don’t even think about being forgiven for this loan unless of course you are in a profession like teaching.

[Fabregas]

Urban, bro:

 

Should he pay back an interest-based loan?

I had taken a government student loan to finance my studies, at the time i took it i was not relegious but ive now come to know that it was a mistake. I thought of finsihing my studies and paying it off, however recently a brother approached me saying that the scholars have given a fatawa that anyone in the west(Canada) who has a loan from the government should not pay it back becuase these governments are financing the attack against our brothers in chechnya. Is this true? and please advize me as to what i should do regarding my loan?.

 

 

Praise be to Allaah.

 

Firstly:

 

Praise be to Allaah Who has guided you to the truth and has made you become religiously-committed. This is one of the greatest blessings that Allaah can bestow upon a Muslim.

 

Secondly:

 

If the loan involves paying interest when paying it back, then this loan is haraam and it is not permissible to continue with it. Allaah says (interpretation of the meaning):

 

“O you who believe! Fear Allaah and give up what remains (due to you) from Ribaa (from now onward) if you are (really) believers”

 

[al-Baqarah 2:278]

 

If it is possible to cancel this loan, then you must do so.

 

Thirdly:

 

You have to repent and seek forgiveness, and feel regret for what you did, and resolve not to do it again. And be of good cheer, for Allaah accepts the repentance of His slave when he repents. The Prophet (peace and blessings of Allaah be upon him) said: “The one who repents of sin is like one who did not sin at all.” (Narrated by Ibn Maajah, 4250; classed as hasan by al-Albaani in Saheeh Ibn Maajah, 3427).

 

Fourthly:

 

If you cannot get rid of this loan, then you have to pay it off. If you can get out of paying the interest without any negative consequences, then you must do that, because it is not permissible for you to pay interest (riba), for the Prophet (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the one who records it and the two who witness it. He said they are all the same. (Muslim, 1598).

 

If you cannot avoid paying this interest, then pay it because you are forced to do so, whilst hating it in your heart. Allaah does not burden anyone beyond what he is able to bear. It is sufficient for you to repent and regret what you did, in sha Allah.

 

Fifthly:

 

The idea that these governments are financing the attacks against Chechnya is something which has to be proven. Even if it is proven, it does not mean that every dealing with them becomes haraam. Rather with regard to what involves helping in falsehood or in waging war against Muslims –as the questioner mentioned – or in things that are forbidden in sharee’ah, it is not permissible to help in that or to get involved in it.

 

And Allaah knows best.

 

http://www.islam-qa.com/en/ref/9700/student%20loan

[-Lily-]

Urban, many students in the UK are in the same situation. My advice is, finish your studies (or it will all be in vain), if you can avoid taking further loans do so, make it a priority to pay back ASAP and repent to Allah, and remember He is not blind to your struggles and conflicts.

[Ms DD]

Pay it off as soon as you can bro. But if you can get a loan from family or friends (unlikely in most cases), it would be even better. I only took one year loan (cos in my case the govt used to pay for our tution fees back then), and i finished paying 3 yrs ago, 4 years after I graduated. I was paying £40 per month. But £7 interest ayaa ku kordheysay everymonth.

As Aaliyah said, finish your education and pay it off as quickly as possible

[Urban]

I prayed istikhara last night, and had this dream where I was lying on top of a skip filled wish cash.. and I was surrounded with some cadaan people I've never met. Then I remember piling wads of cash to form a pillow and asked one of the guys to pass me a blanket so I could sleep.. Thats all I remember.

I already have 2 interest free overdraft accounts which are -£2000 in total, and one of the banks is chasing me like a dog already.

[Sir-Qalbi-Adeyg]

You can't get out of student loans, how else are we expected to pay for school and hence make a living? Luckily I don't owe that much because of scholarships, assistance etc.

 

But I'll be owing more because of post grad school next year.

 

Interest is part of life in the western world, you can't get out of it. Get a part time job and work enough in the summer to pay off the tuition if it's possible.

[Geel_jire]

urban thanks for this post sxb.

 

I paid for my undergrad without a loan .. but for grad school I took out a loan which I have already started paying back as I'm finishing up in the next few months.

 

the sh. I spoke to said it was ok as it was a necessity..... at the time that is what I wanted to hear so I didn't even look for alternatives .. I have been thinking about this for the last few months .. I guess now my only option is to pay it all back ASAP.

[Ibtisam]

Protocol, that is not true, you can get around it and people do, it just means some hardship. No one said it is going to be easy.

 

Urban, good luck brother with paying it off, I would advise you finish your education, so that it is all for nothing and then pay everything off ASAP.

 

P.s. Now that you know it, you cannot justify taking out a loan next year, so start planning how you are going to pay for it, and live without messing up your grades.

 

Where there is a will, there is a way, I believe in you, now go and get a couple of jobs. May allah make it easy for you I'A.

[Resistance]

^^ Yes u can survive without interest. which beleive system do u value, our faith that tells us Riba is one of the great sins or western beleive system which uses riba to control ordinary indivuals and keep them on lock down forever.

 

I don't know about other countries but in the UK is pretty easy to get through uni ( first degree ) without taking loans. Part-time work should more than cover ones day to day expenses. lets be honest 90% of Somali famlies are low income so the LEA will cover tutition fees. and these days there even a grant available to most people.

[chubacka]

without knowing circumstances, it is possible to get through uni without loans, many cadaan ppl do it by having more than one part time job.

 

This will mean u jst have to work super hard to keep up with everyone else but that is great experience for life after uni as it doesn't get any easier.

 

Many muslims r in the same boat though, I dnt know what the hell i spent my loan on but whats done is done, we have to regret it,seek forgiveness and try to move on.

[Nehanda]

I know that this topic is not related to purchasing properties but what then if you are tired of renting, wish to buy a house and the only bank willing to lend you the money comes with interest. Bugger!

 

Surely, there should be some leniency after all we are living in a non-Muslim country. If a woman can now travel without a man surely there should be some laxity towards the rule with regard to taking interest where there is not much of a choice. I am sorry but renting which is technically paying off someone else mortgage is NOT much of a choice.

[Sir-Qalbi-Adeyg]

Originally posted by Ibtisam:

Protocol, that is not true, you can get around it and people do, it just means some hardship. No one said it is going to be easy.

Technically you could, but you would be compromising on your studies because you'd have to be working 30-40 hours a week especially if you have to pay rent, textbooks, food etc. We're human, not machines who wants to go through that much hardship and hassle especially when your young? At the end of the day it depends on the person and what is important to them.

[Ibtisam]

^^^Well maybe you need to be smart and get a job, where you do not have to work 30-40hrs a week and study. I worked and studied (undergrad and postgrad) without a loan and without compromising my studies, so pardon me if I sound like a machine.

 

We're human, not machines who wants to go through that much hardship and hassle especially when your young?

What has deen got to do with being young or hassle free? As you said, at the end of the day it comes down to what is important to each person. I think most young people are concerned about the burden in the future of loans and the sins it involves. So please, do what you want to do, but don't make excuses/ say it is impossible or try and make it seem like it is OK, it is not, and we should avoide it, regardless of how hard.

[Sir-Qalbi-Adeyg]

Who said I don't have a job? I do have a part time job, but a part time job alone especially at minimum wage will not cover everything. I'm not speaking for myself but others with loans, because fortunately for me I don't owe that much.

 

I'm sure allah(swt) will be understanding. Intentions and doing good are more important than just 'staying away' from sin.