Student Loans through FAFSA (Free Application for Federal Student Aid)
Question:
I am interested in counting my education in USA. I am a mother of three children and I am applying for online master. Is the loan that I might get from students loan via Fafsa halal? Knowing that I have a bachelor of dental surgery from Jordan and the only way to have the license in USA is by applying to two years program that will cost a tons of dollars. The master might support my way to the admission to the dental program. Also, I am now 8 years out of practicing and really I am very disappointed and at the same time I am looking to halal solutions.
Answer:
In the Name of Allāh, the Most Gracious, the Most Merciful.
As-salāmu ʿalaykum wa-raḥmatullāhi wa-barakātuh.
Dear Sister,
We sympathize with your frustrations regarding your pursual of further education and dental practice. At the same time, we admire your steadfastness in only availing those avenues which are ḥalāl. We make duʿāʾ that Allāh grants you barakah in your rizq and gives many people shifāʾ through you.
In and of itself, FAFSA does not issue loans. Rather, it serves as a standard application for financial aid of various types that is then sent to different colleges. The data from the form is used by colleges and, in some instances, states, to determine a person’s eligibility for financial aid.[1] Therefore, it is permissible to submit a FAFSA application.
After filling out the FAFSA application, a student may be offered a variety of financial aid options. These include:
Along with interest-free loans, grants and work-study programs are generally interest-free. However, the fine print of each financial aid package would have to be examined in order to make sure that it is Sharīʿah compliant. If you receive any of these offers, you can contact Darul Iftaa Canada again, and we can, inshāʾAllāh review it.
Along with the three options listed above, there are a few more options that can be explored:
- Reaching out to the Muslim community and seeing if they can sponsor you. Dentistry is a great need, and in the future, you may be able to provide services to those in the community who are less fortunate.
- Seeking out private, interest-free loans from friends and family. One large loan can be taken from an individual, or several small loans can be taken from multiple people.
A Final Word of Advice
We urge you to remain steadfast and resolute in the face of the challenge confronting you. Shayṭān seeks to prey on our vulnerabilities and attack us at times of frustration. You are a person whom Allāh has blessed with concern for ḥalāl and wholesome wealth. A momentary lapse of judgment, especially in matters like interest, can lead to a vicious cycle of debt, interest, and years of regret. (Please see this question for a real-life example: A wife’s concern for the Riba’ in home for past 15+ years | Fatwa.ca).
Remember that the one who obeys Allāh ﷻ is never at a loss.
وَمَن يَتَّقِ اللَّهَ يَجْعَل لَّهُ مَخْرَجًا. وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ ۚ وَمَن يَتَوَكَّلْ عَلَى اللَّهِ فَهُوَ حَسْبُهُ (سورة الطلاق: ٣-٤)
“Allāh will find a way out for those who fear Him and will provide for them from an unexpected source; Allāh will be enough for those who put their trust in Him.” (65: 3-4)
Interest-bearing transactions are ḥarām for both the borrower and the lender. We encourage you to explore the several ḥalāl options that are available. This, along with abundant ṣalāh, duʿāʾ, and patience will, inshāʾAllāh, result in many unexpected doors opening for you.
We pray that Allāh gives you and your family the best of both worlds.
And Allāh Taʿālā Knows Best
Muftī Mohammed Wahaajuddin
Farmington Hills, Michigan, USA
Checked and Approved by:
Muftī Faisal bin Abdul Hamīd al-Mahmūdī
Darul Iftaa Canada (www.fatwa.ca)
[1] How Financial Aid Works | Federal Student Aid
“Before each year of college, apply for federal grants, work-study, and loans with the Free Application for Federal Student Aid (FAFSA®) form. Your college uses your FAFSA data to determine your federal aid eligibility. Many states and colleges use FAFSA data to award their own aid. After submission, you’ll receive your Student Aid Report.”
[2] Loans | Federal Student Aid
Federal Interest Rates and Fees | Federal Student Aid
[3] https://studentloanhero.com/featured/interest-free-student-loans-exist/#fafsa
“With funds so limited, the organizations that offer no-interest student loans want to see that you have already done everything possible to pay for school in other ways. The FAFSA is an essential part of that process.
The FAFSA not only assesses your need for student loans but also identifies financing options for you, including scholarships, Pell Grants and work-study programs.”
[4] Grants | Federal Student Aid
Find Grants for Graduate School & Graduate Fellowships | Sallie Mae
[5] https://studentloanhero.com/featured/work-study-programs-borrow-less-for-college/
