Assalamu alaikum mama, sorry for messaging at this time. I just had a very important question. I need you to ask our most respected scholar if I can take student loan to pay for my university. I got the highest grades in highschool and college but couldn’t persue my dream of becoming a skincare scientist because of being afraid of making Allah angry. I am only 20 years old and I still hold one of the best grades to get into a top university alhamdulillah…I really need this education to secure my job in the UK and to help sponsor Shahin.

Wa ‘alaykum al-salam wa rahmatullahi wa barakatuhu,

May Allah ﷻ increase you in knowledge and make you an asset to the Ummah. Ameen.

We are familiar with the fatwa issued by Shaykh Haitham al-Haddad on the fiqh of student loans in the UK. [See: https://www.islam21c.com/islamic-law/on-sh-haithams-student-loans-fatwa/]

Suffice to say we do not agree with the respected Shaykh’s conclusion and our response to obtaining a student loan in the UK is as follow:

It will be permissible to take out an interest-bearing student loan in the presence of genuine need and difficulty—where an alternative halal option to cover one’s tuition fees is not possible, or it is difficult in finding.[1]

Education is a necessity, and it would be farfetched to argue otherwise. With that said, we feel that there are still some steps which one should [sincerely] attempt to take prior to assuming or taking on an interest-bearing student loan. 

Islamic Finance Guru (IFG) of the UK has a great article on this, the summary points of which are: 

1. Consider do you need to go to university?
2. Take a gap year and work.
3. Minimize costs whilst at university.
4. Work whilst at university. 
5. Get a scholarship.
6. Gap years during university.

The full article can be read here: https://www.islamicfinanceguru.com/articles/is-a-student-loan-haram

One should wholeheartedly attempt to implement these suggestions, and where it is too difficult or impractical, due to one’s situation, a student loan can be taken.

The verdict of the Shaykh that there is no interest involved when one takes on the student loan in the UK is incorrect. 

Although it is true that the money given by the government goes directly to one’s college or university, it is nonetheless false that there is no interest involved when taking on this type of loan.

Gov.uk mentions the following: 

“You are charged interest from the day we make your first payment to you or to your university or college until your loan has been repaid in full or cancelled. Interest is added to your balance each month.” – [See: https://www.gov.uk/guidance/how-interest-is-calculated-plan-2]

The reality of interest also holds true for the maintenance loan: 

See: https://www.practitioners.slc.co.uk/products/full-time-undergraduate-education/full-time-maintenance-loan

As for the argument that the student loan is not considered riba but rather a mudarabah (partnership) transaction and thus permissible, we advise that you read the following fatwa written by Mufti Faraz Adam of the UK: https://darulfiqh.com/are-student-loans-a-mudharabah-investment-contract-2/

Considering the above, these student loans do in fact involve the charging of interest, and hence, are not interest-free. As such, taking on an interest-bearing student loan and/or a maintenance loan is only permissible after having sought out halal alternatives such as those mentioned above.

And Allah ﷻ knows best. 

فإن كان صوابا فمن الله وإن كان خطأ فمني ومن الشيطان والله ورسوله بريئان منه

___________

References:

1.

يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ ٱتَّقُوا۟ ٱللَّهَ وَذَرُوا۟ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓا۟ إِن كُنتُم مُّؤْمِنِينَ فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍ مِّنَ ٱللَّهِ وَرَسُولِهِۦ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ

[سورة البقرة، رقم الآية: ٢٧٨، ٢٧٩]

عَنْ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ عَنْ النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قَالَ لَعَنَ اللَّهُ آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ مَا ظَهَرَ فِي قَوْمٍ الرِّبَا وَالزِّنَا إِلَّا أَحَلُّوا بِأَنْفُسِهِمْ عِقَابَ اللَّهِ عَزَّ وَجَلَّ

[ مسند أحمد، رقم الحديث: ٣٧٩٩]

عَنِ ابْنِ مَسْعُودٍ عَنِ النَّبِيِّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ قَالَ مَا أَحَدٌ أَكْثَرَ مِنَ الرِّبَا إِلَّا كَانَ عَاقِبَةُ أَمْرِهِ إِلَى قِلَّةٍ

[سنن ابن ماجه، رقم الحديث: ٢٢٧٩]

المشقة تجلب التيسير. العبارة الأخرى: الحرج مدفوع. ما يؤدي إلى الحرج يكون موضوعا عن المكلفين.

فالعسر سبب من أسباب التخفيف والتسهيل في فرض الأحكام، إذ أن أسباب التخفيف والتسهيل في الأحكام سبعة: العسر، الاكراه، المرض، النسيان، الحبل، النقص المادِّيّ أو المعنوي في الإنسان

[القواعد الفقهية من مجلة الأحكام العدْلية، صفحة ٤٠، ٤١، مكتبة البشرى]

الضرورات تبيح المحظورات. العبارة الأخرى: ١ مواضع الضرورة مُسْتَثْناة من قواعد الشرع. ٢ يجوز في الضرورة ما لا يجوز في غيرها. ٣ لا تكليف إلا في مقدور. ٤ التكليف بحسب الوسع. ٥ الطاعة بقدر الطاعة.

[القواعد الفقهية من مجلة الأحكام العدْلية، صفحة ٤٣، مكتبة البشرى]