Is a student loan haram?

Blair Labadie asked a question: Is a student loan haram?
Asked By: Blair Labadie
Date created: Wed, Mar 31, 2021 6:49 PM
Categories: Maintenance loan

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Those who are looking for an answer to the question «Is a student loan haram?» often ask the following questions:

💰 Is it haram to take student loan?

' Like Rabbil, many Muslims hoping to get an education face a dilemma – to take out or not to take out a student loan. You might not be aware but for Muslims, interest is haram (forbidden). Any loans that require repayment with interest added on are not permissible.

Question from categories: maintenance loan loan debt

💰 Is the student loan halal or haram?

There are a few arguments made by people who argue a student loan is not haram: Student loans charge interest rates that track inflation. Student loans are a necessity; A student loan is not really a loan in the shari’ sense (1) used to be true but no longer is as the student loan company in England & Wales now charges above-inflation interest rates.

💰 Is personal loan haram?

Islamic law views lending with interest payments as a relationship that favors the lender, who charges interest at the borrower's expense… Interest is deemed riba, and such practice is proscribed under Islamic law. It is haram, which means prohibited, as it is considered usurious and exploitative.

Question from categories: student loan

16 other answers

a) There is one type of student loan where you can pay back within a certain period, without giving any interest. This is halal if all are paid-back without any extra money (interest). b) If the student loan is not as above, and payback involves paying interest, then this is usury (riba), so the original/default ruling for this that it is haram and a major sin.

He took out a student loan, but I did not know that this loan is haraam until recently. In order to pay off this loan, my son has to get a job with an annual income of more than 21,000 pounds, otherwise he does not have to repay the money. My question is: what will happen if my son is not able to get a job that will guarantee him an income that ...

The UK student loans are not typical loans, and do not really resemble the loan that the Islamic jurists of the past spoke of when they spoke about loans. This is apparent in the following points: The loan is not actually paid to the student, so you never get hold of the money in the first place, nor do you have the choice to do with it as you wish.

No one can state student loans are halaal; no matter who you are getting the loan from if you are paying back more than you borrowed it is haraam. Did you take out a student loan before you decided to conclude it was permissible?

There are a few arguments made by people who argue a student loan is not haram: Student loans charge interest rates that track inflation. Student loans are a necessity; A student loan is not really a loan in the shari’ sense (1) used to be true but no longer is as the student loan company in England & Wales now charges above-inflation interest rates.

I was wondering if applying for a student loan is haram This is not the place to ask for a coherent answer in all honesty. However, I will say if u don't require it e.g. like me I'm living at home and parents don't charge rent or much money (£50 per week) and my travel is covered by bursary الحمد لله I don't need maintenance loan however, I require a tuition loan).

Riba is haram, haram, haram. It is absolutely not something to be taken lightly and no one should be taking out a student loan without consultation with a reputable scholar who understands the UK context, and without trying your hardest to avoid it.

People who claim that a student loan is not haram make the following arguments: Student loans charge interest rates that track inflation. Student loans are a necessity; A student loan is not really a loan in the shariah sense (1) used to be true, but it is no longer so because the student loan firm in England and Wales for instance are now charging interest rates that are higher than inflation.

With regard to student loans, they must fall into one of three categories: 1. Where the loan does not involve riba, and the student pays back what he took, without any interest. In this case it is permissible to take this loan, and there is no problem. 2.

There are a few arguments made by people who argue a student loan is not haram: Student loans charge interest rates that track inflation. Student loans are a necessity; A student loan is not really a loan in the shari’ sense (1) used to be true but no longer is as the student loan company in England & Wales now charges above-inflation interest rates.

He took out a student loan, but I did not know that this loan is haraam until recently. In order to pay off this loan, my son has to get a job with an annual income of more than 21,000 pounds, otherwise he does not have to repay the money. My question is: what will happen if my son is not able to get a job that will guarantee him an income that ...

Like Rabbil, many Muslims hoping to get an education face a dilemma – to take out or not to take out a student loan. You might not be aware but for Muslims, interest is haram (forbidden). Any loans...

No one can state student loans are halaal; no matter who you are getting the loan from if you are paying back more than you borrowed it is haraam. Did you take out a student loan before you decided to conclude it was permissible?

With regard to student loans, they must fall into one of three categories: 1. Where the loan does not involve riba, and the student pays back what he took, without any interest. In this case it is permissible to take this loan, and there is no problem. 2.

Thus, student loans as they stand are not suitable for Muslims. It is important to note that whilst conventional finance treats money as a commodity that is able to earn profit in its own right; the Islamic concept of finance considers money only a measure of value and a medium of exchange with no intrinsic utility.

The UK student loans are not typical loans, and do not really resemble the loan that the Islamic jurists of the past spoke of when they spoke about loans. This is apparent in the following points: The loan is not actually paid to the student, so you never get hold of the money in the first place, nor do you have the choice to do with it as you wish.

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