Student loans and other borrowing : student loan with a grace period to pay without interest

Fatawa Question

[Question One] : Aslamu Alaikum Warehmatullahi Wabarakatu, May Allah (SWT) reward u with success n happiness in this world and Aakhirat InshaAllah. I hope I am not bothering you with my mail but plz I am in need of urgent advicce and I do not know who to ask. I got ur e mail address from islamonline.net Alhumdulillah. The thing is I wrote to u earlier abt taking a Riba loan and how I dont want to work because of Niqab etc. So Alhumdulillah I got a job (widout Niqab) in the summer but that lasted for only 3 weeks and the pay I have is approx $ 300. My father told me to quit so that I can pay more attention on my studies. Now the thing is I signed the fall loan while I had the job and I didnot know at that time for sure that I wil be compelled to quit. I found out wen I came home after signing the loan. So now I only have the choice of geeting the specific grades my father told me so that he will pay 75 % or even 100 % of my loan InshaAllah. I now have few questions : 1. I still have 5 loan papers to sign in the future. and I have signed 3 loan papers. The money for the 5 amounts is to approx. $ 12,250. For the three it amounts to $ 5,250. Out of the 5,250 my father paid $ 2000 cuz I got good grades Alhumdulillah. In the remaining 2 and a half years. i'll only pay ( thru job) $ 8064 aprrox. Thats the estimate I have calculated. To pay the rest of the money I have to get good grades InshaAllah. And they charge u interest in grace period too but its less. I know certainity to pay matter the most here. But provided all that, should I sign the 5 loan papers in the future ? I mean InshaAllah I can get good grades but the thing is of course thats risky and I cant say with 100 % certainity that i'll get the exacvt grades my father wants me to get to pay the full loan. Plus, I get very pessimistic about things that wot if i'll be able to get grades or not, wot if I dont get a job etc. So plz tell me whther I should go for the 5 loan papers ? 2. My father keeps saying that he will pay the loan for me even if he has to work very hard for that. he knows how I am against Riba and he keeps telling me that it’s a challenge / jihad to strive to get good grades so he can pay all my loan InshaAllah. I understand all that but as I mentioned I get negative thoughts that wot if I sign the loan and in the end dont get good grades, then wot ??? But even despite that he sayz that because I m a girl so it is his responsibilty to pay my loan (not sure with or without interest) and that he seriiously wants me to get educated so I can have a decent future InshaAllah. Now once again I am so confused. 3. Lastly, can I pay my tuition fees forrom the loan money by myself. Like suppose if I repented that I wont take Riba loan again. But frm the loan that I previosly took, can I pay my fees from those money or is it like engaging in Riba too ??? I hope u clarify this InshaAllah. Please respected scholar I really cant think straight. At one side its a major sin, on the other side not signing it leads to great turmoil in my family such that my father may harm himself cuz hez very sensitive to these kind of issues. The only option he gives is getting decent grades and thats it no other talks or ways to convince him to talk to a Shaikh etc. So in the end I m left with the choice to run away frm home with no place to go etc and I really dont want to run away frm home if I was a guy then it wouldnt have been such a big deal but cuz I m not so it is. Plz give me sume advice InshaAllah. JazakAllahu Khairun for ur help. [Question Two] : Respected scholar, forgive me for bothering you again and again. Due to circumstances, I am kind of compelled to write to you again about the Riba loan. Alhumdulillah you previously encouraged me to take the loan with certain conditions of course. My loan for this year (including fall and winter semester) would be to the maximum $ 5000. I'll receive the same amount for at least two more years. I had a discussion with my father and he says that if I satisfy his requirements of the grades, that I should get each semester, he'll pay my loan for that semester. So Alhumdulilah he paid my loan for the fall semester but expected and encouraged me to get more grades the coming winter semester. I told him that I can only sign the loan if I have the certainty that I will pay it off within the time period (b4 interest) and he supports my efforts in doing so. Although, he wants me to get really good grades, he encourages me to work hard towards this purpose plus he says, Alhumdulillah, that he will help me too in acheiving that purpose InshaAllah. The question is that I told him that even if I work I wont be able to save enough money to pay the loan before interests accrues. So he said that I should pay what I can from working in summer and the rest he will pay at the end. And I can return to him that amount, which he paid on my behalf, when I get a job after I graduate InshaAllah. The only thing that he mentions is ""uncertainty."" Because he says that he wants to save some money for my younger brother's education, he says that if we are good financially at the time of paying the loan then he will pay most of it on my behalf and I can pay him that amount later on widout interest. But if we are not good financially then Allahu Alam. Although InshaAllah and Alhumdulillah we are stable right now and InshaaAllah hopes to be in the future too but of course there is no guarantee to anything. So should I take this uncertainity in account wen I sign the loan, I mean should I just assume that InshaAllah we will be financially stable, and will have enough money for my younger brother education, at the time of paying the loan ? I trust Allah InshaAllah and I have this feeling that InshaAllah hopefully I wont have to pay Riba. Plus I am willing to work hard and aim for scholarship too InshaAllahu Ta'la. Kindly advise when its feasible for you to reply. Alhumdulillah your advice helped previously too. May Allah grant you good in this life and next. JAzakAllahu Khairun Walaikum Alsam Wraematullahi Wbarkatu.

Fatwa

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Publication Date

2006-09-26

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

4

Data Type

Fatawa

Language

English

Record ID

BIM-785760

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