Student Loans...Is it wrong???

[Yusrah Uthman]

As salamu aleykum wr wb

Once, I was talking with a sister of mine and we started to discuss whether or not student loans are haram. Listening to a lecture (When Wolves Become Shepherds, I believe), I was told that student loans are riba and hence haram. My question is, are student loans really forbidden in Islam? If so, what makes them forbidden? Some people might say that if one really does not slack off and pays off whatever they can throughout the 4 years plus the 6 months after graduation, there is really not that much debt to fear and they might graduate debt-free. Could this be true?

Jazakamullah Khairan
As salamu aleykum wr wb

[brother_bruce]

Assalaamu alaikum Sr Yusrah

Since you're in Ottawa, I'm assuming you take OSAP. If this is the case, I just wanted to let you know that you do not have a 6 month grace period after you graduate.

The interest starts to accrue from the day you finish school. The whole 6 month thing is only that they do not ask you to pay the interest right away, but they give you 6 months to find a job and get income.

eg. Your last day of school is officially April 30th.
Interest starts accumulating on May 1st.
OSAP will not ask you to make payments until November 1st.
However, when they do ask you to make payments, those payments will include accrued interest from May 1st onwards.


Also, you mention that a person could work really hard while in school, and pay off those loans even as s/he's taking them (I assume). Couldn't the person just work and pay tuition with their own hard earned money, rather than risk taking a potentially haraam loan as a middle-man? Work the summer before you enter university, and you can easily raise $5-8k bi idhnillah. Repeat this every summer, and you'll never have to touch a cent of loan money. Additionally, its very feasible to work 10-12 hours a week and generate additional income for emergency/ personal expenses.

The only key here is to be disciplined with that money, and not buy lunches every other day and stuff... because that can really sink a hole in your pocket.

on a somewhat related note: http://forums.almaghrib.org/showthread.php?t=17878

[Yusrah Uthman]

wa aleykum as salaam

Jazakamullah khairan. By the way, I dont take OSAP and intend never too.

As salamu aleykum wr wb

[Muhammad Alshareef]

I know of people who didn't take the loans for the sake of Allah, and Allah blessed them with what they needed.

Place your trust in Allah and Allah will find a way out for you.

[Imtiaz]

In the USA, the interest begins after the 6 month period. Moreover, if payments are due say the 21st of the month and you check arrives late, that interest gets CAPITALIZED....terrible system, sneaky as grease on a hot louisiana day.

[Megan Wyatt]

My parents paid my college tuition, and although they weren't/aren't Muslims, the opted out of the interest system, which was SUCH a wonderful gift, because I finished school with zer0 debt..well..maybe a debt of gratitude towards my parents that I can't possibly make up for They paid installments...and that was a combination of their savings (Which I think wasn't much) and some money the budgeted, and some inherited.

In any case, many people pay their way through school....we just have to leave the mentality that everything HAS to be do 4 years, solid, back to back classes.

And of course, you should always check out scholarships. There are so many available now and days. I know of a friend who got a full ride in her small university on the "African American Woman" scholarship...she is second genration Egyptian..which is afterall, in Africa...not, perhaps, what those who founded the scholarship had in mind, but she did qualify, and dind't have to pay a dime for school.

Ask Allah...there will be a way, but it may require some sacrifice!

[Abdullah~]

Asalamu alaykum wa rahmattallah wa barakatu,

I read the following hadith in Bilal Philip's book Tafseer Soorah Al-Hujuraat:

"Jaabir ibn Abdillaah and Ibn Mas'oud reported that Allah's Messenger cursed the devourer of Ribaa, the one who pays it, the one who wrote it up (the contract), and its two witnesses, and said "They are all the same."
(collected by Bukhari/ Sahih Muslim / Sunan Abu Dawud)

So when I read hadiths like these it was quite clear no matter what any fatawa person says. I would consider myself at the very least a witness to agree to the riba based contract. I even practice refusing to buy things for people with credit cards based on the same reason. Wallahu Allam. May Allah SWT have mercy on us all.

I really recommend Bilal Philips short article on Ribaa from that book, once you read it you'll wonder how a Muslim or Muslims could ever even think about ribaa, it's awesome and powerful mash'Allah.

[Imtiaz]

Originally Posted by Abdullah~

I really recommend Bilal Philips short article on Ribaa from that book, once you read it you'll wonder how a Muslim or Muslims could ever even think about ribaa, it's awesome and powerful mash'Allah.

I found something very similar, and I know the policy of external links, so if the admins deem this inappropriate by all means do your job.

http://www.bilalphilips.com/index.ph...=86&Itemid=107


In regards to what the brother said above, there was an insert in the article that states,

"It may also be pointed out by them that dire necessity makes the forbidden allowable, is a well-known principle in Islaamic law, hence the sins one is forced to do are not held against him. This principle can be found in Ibn Abbaas’ report that the Prophet said,

“Allaah has pardoned my people for their inadvertent mistakes, their forgetfulness and for what they were forced to do.” 1 "

The article then goes on to describe what "dire necessity" means, so by no means is it an outlet for anyone to go willy nilly using that as an escape clause.




Futhermore, I'd like to enforce the values of working during your time in college. It really does help in various ways, you are forced to manage your time therefore, you have to set aside time to study. Once you set aside this time, you have to stick to it more strickly then when your not working.

In the end, you preform MUCH better in school. Loans are bad.


Allahu Allam.

[Felicity_Muslimah]

Originally Posted by Muhammad Alshareef

I know of people who didn't take the loans for the sake of Allah, and Allah blessed them with what they needed.

Place your trust in Allah and Allah will find a way out for you.

Subhannallah this is soo true. I had to go to college and did not have money for it, everyone (all muslims unfortunately) told me to take loans since everyones on it. Even my parents opted out and told me to take out a student loan. I on the other hand did not want to face Allah(swt) with this great sin. Mind you I'm not the best muslim infact I was not even properly practicing Islam, but still Allah (swt) gave way for me, out of his infinite mercy. I stumbled upon funding, and alhamdulilah, MY WHOLE YEAR GOT PAID FOR, PLUS SPENDING MONEY!! Inshallah I plan on applying again inshallah I hope they accept me for funding for this spring and next year!

[monalette84]

Assalamu Alaykum wrwb

Subhanallah, My mother always said , ' If you do things for Allah's (swt) sake, doors will be opened'. Rizq is minAllah. When my family and I moved to the UK (where in truthfulness fees are less than in the USA) my family were told that even though we were British citizens we would have to pay overseas fees as we had not lived in teh country for three years. My parents not wanting to take ribaa were willing to pay this. Subhanallah we were blessed with a lady (may Allah swt grant her hidaya) in the finance office who found a loop hole that got us out of the situation as my father has his contract renewed yearly and was considered by the UK govt to be on a temporary foreign contract.

And Allah azzawajal knows best