Are we allowed to take out student loans at University?
Question 07/06/14
Are we allowed to take out student loans at University?
Answer By Ustadh Haroon Hanif
Amongst the most destructive acts for a
believer is to engage in any contract that contains interest. Such an act is
tantamount to waging war against Allah, Most High, and His Blessed Messenger,
prayers and peace be upon him. A believer would never consider having any
contact with interest let alone build his life upon interest.
Consider the following verses from Sura
Baqara, verses 275 to 279, where Allah, Most High, says:
‘Those who take interest will rise up (on
the Day of Resurrection) like someone tormented by Satan’s touch. That is
because they say: “Trade and interest are the same,’ but Allah has allowed
trade and forbidden interest. Whoever, on receiving Allah’s warning, stops
taking interest may keep his past gains – and Allah will be his judge – but
whoever goes back to interest will be an inhabitant of the Fire, there to
remain. God blights interest but blesses charitable deeds with multiple
increase ... You who believe, beware of Allah: give up any outstanding dues
from interest, if you are true believers. If you do not, then be warned of war
from Allah and His Messenger.’
Reflect over the severe tone in these
verses, reflect over the fate of someone who deals with interest as he is
resurrected and reflect over the war that has been declared by Allah against
those who consume interest.
Consider the verses in Sura Al-Imran,
verses 129 to 130, where Allah, Most High, says:
‘You who believe, do not consume interest,
doubled and redoubled, Be mindful of Allah so that you may prosper – beware of
the Fire prepare for the unbelievers.’
Again reflect over the harsh tone in the
verse such that great imam Abu Hanifa, may Allah be pleased with him,
considered this verse to be the most terrifying verse in the Qur’an. Reflect
over a Fire prepared for unbelievers as the destination of people who consume
interest.
That
is the extreme nature of dealing with interest. In light of that, one of the
many problems that Muslims face living in a country in which taking interest
loans is a fact of life is the problem of student loans. Ever since the
government introduced the system of student loans the system was based on
inflation based interest, based on which it was viewed as lawful by some.
However, in September 2012 the government altered the student loan system by no
longer linking the interest to inflation. This then made the system of student
loans as undoubtedly prohibited for Muslim students, closing of university
education for Muslims.
At this point it is worth remembering the
words of Ghazzali, may Allah be pleased with him, who said: ‘Seeking out the
lawful is obligatory on every Muslim. Engaging in worship and seeking knowledge
with unlawful nourishment is like building on a garbage heap.’
Ever since then some scholars have worked
on trying to find a lawful alternative that allows Muslims to continue studying
at university. At the forefront of this is 1st Ethical who have lead the
attempts to find this alternative.
Whilst working with the government they
have managed to come to a compromise, creating an alternative which is
acceptable Islamically and satisfies the government requirements. The
government has put out a survey asking for views of the Muslim community to
determine whether there is a need or not. The deadline for this survey is June
12.
Greensville Trust requests all who receive
this to take some moments to complete the survey and to forward this on to as
many as possible encouraging them to complete the survey. When we have an
opening for a halal alternative to something which is prohibited to the highest
degree it is incumbent upon all Muslims not to remain silent and antipathetic.
I personally endorse the alternative
system.
Please read the details of the halal
student loan system at http://www.halalstudentloans.co.uk/
Also watch this video in which a number of
teachers and imams have given their support to this http://www.youtube.com/watch?v=9zamYNkBFAE
May Allah bless the scholars and the
brothers and sisters who have worked on attempting to provide this lawful
alternative.
Haroon Hanif