Interest on insurance accounts and student loans : student loans : [2]

Fatawa Question

Dear Dr Monzer Kahf I have started University in the UK and I was having difficulty in taking out a tuition fee loan only which will cover the academic year. The tuition fees are currently £ 3375 and if I barrow I have to return it back plus the rate of inflation. I am living with my mother so she doesn't have that kind of money to cover the tuition fee loan. My question is my course is a sandwich course which means that the first 2 years I will be at university the third year I will have the opportunity to work or do a paid work placement and after the placement I go back to the University and complete my final year. Now during the first 2 years if I take out the tuition fee loans which is £ 3375 each year and take it for the first 2 years which will work out as £ 6750 and during the placement year I pay that amount of money back to student finance England then I will not have to pay interest because I have cleared it. However, what the government says is that students will only pay back tuition fee loan once they graduate and earn over £ 15000 and that is when they charge the inflation rate interest. So can I have the intention of barrowing the loan and returning it during my placement year is that allowed under Shari’ah law ? Jazak Allah Khair.

Fatwa

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Publication Date

2011-10-31

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Education
• Students
• Loans

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730615

• APA
• MLA
• AMA