Interesting Article on Student Loan Dilemma

[Thinkerman]

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STUDENT LOANS - DANGERS FOR THE MUSLIM STUDENT

 

By Faisal Chaudhury

 

Khilafah Magazine, Nov 2003

 

As the academic year commences across universities in Britain and the debate over student "top-up" fees rages, the issue of student hardship is raised once again. Students were once lamented as the scourge of society due to their idleness and laissez faire attitude. However, the withdrawal of Government grants and the introduction of tuition fees have drastically transformed the reality of student life. This has resulted in the average student having to scrape and save every penny where possible; re-using tea bags, walking ridiculous distances to save on train fares, sleeping on friends sofas and living the classic "baked-beans" lifestyle.

 

In fact, financial hardship is the major concern for UK undergraduates: a point that is confirmed by the National Union of Students (NUS). The NUS states that 57 per cent of students who work do so to cover the cost of basic essentials and 11 per cent are working to cover tuition fees. Since the elimination of grants, student debt has increased by 544 per cent and now totals over £5 billion.

 

The introduction of student loans has contributed to the widening divide between students from well off backgrounds and those from poorer neighbourhoods. Those students with wealthy parents get supported through university and can concentrate on fulfilling their academic potential. By contrast, three quarters of students from poorer backgrounds cited the lack of money and fear of debt as the main reason for not pursuing higher education. Moreover, the proportion of students from disadvantaged backgrounds has fallen by 3 per cent in less than two years.

 

The current method of payment of tuition fees involves an analysis of the income of the student by the Local Education Authority (LEA) and scrutiny of their parents' salaries. What ensues is the production of a figure, often as high as £1,050 per term to be paid by the student to the university. Once this figure is multiplied by three for each of the academic terms, add the cost of textbooks, rent, food and travel it is not unreasonable to put the cost of one academic year at university is between £5,000 to £7,000 depending on location. Figures show that a typical three-year degree may end up costing the student in excess of £17,561.

 

Many students are forced to seek part-time employment. A report published by the Institute of Economic and Social Research in October revealed that six out of ten students are forced to take term-time jobs to support their studies. The report also pointed to the "Safeway factor" whereby students choose universities based on the availability of local jobs in supermarkets rather than the academic reputation of the institute.

 

The impact of students taking on part-time jobs, often with long hours, to fund their education has led to many students too tired to focus on lectures or assignments. Others have ended up missing them altogether. It has also been known for students to turn to prostitution to finance their studies and many students are forced to live at home with their parents.

 

The Saviour - the Student Loan?

 

Not content with creating the problem of student hardship, Western states have endeavoured to introduce the ultimate patchwork solution in the form of the student loan. Ultimately, the loan involves the government-owned Student Loan Company providing the student with the "quick fix" to their financial problems.

 

For many students the prospect of serious financial hardship is an unwelcome burden during their studies and so the student loan is perceived as an attractive option. Most students in the UK take out a student loan, which helps to ease some of the economic strains during the short term. The University of Bath website articulates the case for the student loan:

 

"You may feel fundamentally, ethically or religiously, opposed to the idea of student loans, but they are now an unavoidable element of higher education funding."

 

The loan is to be paid back upon qualification and once the graduate is earning above £10,000 per annum. The reality of the loan is that the interest rate is linked to the rate of inflation. Hence, interest accrues from the day you receive the first instalment of your loan. Therefore, students will not only leave university with a degree certificate but also with the burden of a large debt of thousands of pounds.

 

The Dilemma for the Muslim student - benefit or Islam

 

For the Muslim student, the current state of affairs in higher education funding creates one major conundrum. For all the stipulation that the loan is paid back incrementally at the rate of inflation it is undeniable that the student loan involves the paying of interest.

 

When faced with the prospect of paying interest, many Muslim students and their families begin to attempt to justify the loan. Some Muslims observe that Islam encourages the seeking of knowledge and go on to hypothesise that Muslims require professionals such as doctors and IT consultants to aid the revival of the Ummah. They will point to evidences such as the noble hadith of Muhammad r in which he r states

 

"Indeed actions are by intentions".

 

The argument concludes that once these Muslim students qualify they will use their influence in a way to benefit the Ummah, hence outweighing the haram aspect of the loan. Other Muslims are more blatant in their approach to the issue of the student loan and point to the competitiveness of the job market and re-emphasise the importance of a good degree to grant them a head start in life. Often the pressure to take a student loan is increased by Muslim parents who carry similar ideas on the issue of housing and mortgages and hence see no major problem with their son or daughter taking the student loan.

 

Regrettably, the idea of benefit or a 'whatever willhelp me' mentality is the major concept dictating the behaviour of these Muslim students and their families. This idea originates from the Capitalist ideology that places materialism and the perusal of wealth as the ultimate aim of the human being. Whilst travelling on the London Underground, one can perceive the extent of the emphasis placed on wealth. An advertising campaign by a high street bank, which claims to be "fluent in finance," quoted Oscar Wilde. "When I was young I thought money was the most important thing in life, now I'm old I know it is."

 

For the non-Muslim student, the concept of benefit allows them to take on student loans even though they disagree with the idea of student loans and students having to fund their education. Unfortunately, this mentality has begun to affect the Muslims whereby the Islamic concepts are sacrificed in the haste for material wealth.

 

The textual arguments that attempt to gloss over the issue of the loan and twist the text to justify the student loan are a slander upon Islam. The hadith does indeed state "actions are by intentions," However; does Islam permit a haram action to achieve a halal objective? Is it permitted to steal an orphan's wealth to build a hospital while arguing for the greater good? Clearly not.

 

As for the argument that the student will help the Ummah upon qualification, this argument often gives way to pragmatism once the individual enters society. The nine to five lifestyle and 2.4 children with a mortgaged semi detached house in suburbia symbolises their "struggle" and becomes their life. The Ummah does not need more graduates to achieve revival. The Ummah requires politicians and daw'ah carriers as the Muslim world is blessed with intellectuals and experts but lacks a political system to harness their talent.

 

Fundamentally, those who try to justify student loans and the interest accrued on them misunderstand an important principle of Islam - that your rizq (provisions) being fixed by Allah I.

 

Allah (swt)says

 

"Who is the one who is going to give you rizq (provisions) if Allah withholds it from you"

[TMQ Surah Mulk: 21]

 

The lives of the Sahabah are a practical example of how Muslims should view their rizq. It is narrated that the Prophet (saw) created a brotherhood between the Muhajireen (immigrants) from Makkah and the Ansar in Medina. The Muhajireen had given up their wealth and status to make the hijrah (migration) to Medina.

 

One particularly striking example is that of Abdur Rahman Ibn Auf (ra), who left behind great riches in Makkah. When he arrived in Medina, the Messenger of Allah (saaw) established brotherhood between him and S'ad ibn Al-Ansari. S'ad (ra) said to him. "Oh my brother!" I am a wealthy person of Medina. Look! It is half of my wealth, take it. I have two wives. I am going to divorce one of them whom you like more so that you may marry her." Abdur Rahman (ra) replied, "May Allah prosper your family and wealth. You just tell me the way to the market."

 

It is narrated that Abdur Rahman Ibn Auf (ra), after making such sacrifices in Makkah, went on to regain his wealth in Medina due to his expertise in trade. He was one of the wealthiest companions and Imam Ahmed narrates in Al bidayah that Abdur Rahman (ra) said. "If I picked up even a stone, I hoped that I will get gold or silver out of it in trade."

 

Hence the example of Abdur Rahman (ra) demonstrates how making sacrifices for Islam does not necessarily diminish the Muslims wealth and that the sustenance is indeed fixed.

 

The Muslim student should be comfortable in the knowledge that Allah (swt)has already apportioned his rizq and it cannot be increased or decreased. The question now arises, how does he achieve this rizq? Will the Muslim student take the halal route or the haram one? Indeed, it is narrated that Abu Hanifah (ra) questioned the thief with "Why do you steal your rizq?" The money the thief stole would be earned in a haram manner similar to the rizq earned via a riba-fuelled degree.

 

It is unacceptable that the Muslim student despairs of the rizq of Allah (swt). The criteria for action for the Muslim must be the halal and the haram. The Muslim pays no credence to the concept of benefit, as this criterion is un-Islamic. Muslims must understand that adherence to the shariah is of the utmost importance and the reality of the student loan is that it involves the paying of interest (riba). The texts concerning riba in Islam are not open to interpretation; rather they are definite in meaning.

 

Allah (swt)says,

 

"Those who devour (take) interest (riba) cannot stand except as the one whom Satan, by (his) touch, drives him to madness. That is because they say: Trade is just like riba, whereas Allah permitted trade and forbade riba. The one to whom an admonition from his lord comes and he refrains (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returns (to usury), such are rightful owners of the fire. They will abide therein eternally."

[TMQ Surah Al Baqarah: 275]

 

Indeed in the hadith of the Prophet (saw), he (saw) highlighted the gravity of taking or paying interest. Abdullah bin Mas`ud (ra) reported:

 

The Messenger of Allah (saw) cursed the one who accepts Ar-Riba (the usury) and the one who pays it. [Muslim].

 

The Prophet (saw) also said.

 

''On the night I was transported (i.e. the night of Isra and Mi`raj), I was brought to a people whose stomachs were [large] like houses, with snakes inside them which were visible from outside their bellies. I said, 'Who are these, O Jibreel?' He said, 'Consumers of riba.' '' [ibn Abi Hatim, Ahmad]

 

There are practical steps that Muslim students can take in order to finance their degrees. For example, during the gap year money can be raised for university by working or borrowing money from halal sources.

 

Living in the West provides the Muslims with numerous challenges. From student loans to mortgages, the path to one's rizq is littered with temptation and pitfalls. However it is in these times that adherence to Islam will bring us reward from Allah I.

 

The Prophet (saw) said:

 

"After you there are going to be days of patience. The patience during that time is like the one clutching on to a hot coal. The one who works and does good deeds during that time will receive the reward of fifty men who do deeds similar to him". (Abu Dawud, Tirmidhi)

[N.O.R.F]

Jazakallahukhara bro!

 

"You may feel fundamentally, ethically or religiously, opposed to the idea of student loans, but they are now an unavoidable element of higher education funding."

Thats just the way it is these days. You try convincing an 18 year old who has just started uni and comes from the endz not take out a loan £5000 a year. Temptations usually take over.

 

To be honest i thought the loan was interest free, i'm sure that what alot ppl aslo thought. May allah forgive all those who either take or pay interest unintentionally,,,ameen.

[Thinkerman]

Ameen Bro Ameen