Question:

Could you please guide me about student loans. What are the alternatives in shariah for it?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

We take note of your query and appreciate the fact that you have chosen to seek Shar’i guidance on the matter. It is indeed your imaan which has spurred you to assess the correct path for your future studies.

The vileness of interest has been explicitly mentioned and oft-reminded by the ulama, so I do not wish to lengthen the response by repeating these advices. You can read up on the concept and parameters of interest from my detailed response at : https://fatwa.ca/islamicfinance/interest-and-mortgage-in-western-countries-should-we-revise-our-understanding-of-riba/

I recognize the problem of student loans and completely share your concern. Be that as it may, unfortunately currently there is no viable solution to this problem. For some years now, I have been in constant contact with other Ulama and Muftiyan to seek solution in this regard. While there could be few patch-up solutions, but none that would provide a long term viable alternative. I ask you to sincerely make dua that Allah help us Ulama in finding this solution.

For now, we advise you to seek some help through

• scholarships
• part-time jobs
• non-interest bearing loans from some avenue

etc.

If you are not able to find any viable solution, then consider opting for an alternative course within your reach, or moving to a foreign city where the similar courses are cheaper. Since you are already working, then maybe you can seek your employer to assist your in your endeavour.

I urge you to approach the local Islamic Center as well. Ideally these centers should actively look into ways of fulfilling these needs of the future generations. These students will become our future. Any scholarship or bursary towards our next generation will indeed shape our future. Scholarships can be established by individuals as well as organizations. They do not take much difficulty to set up and offer a reasonable alternative for atleast a few students per city.

I make my sincerest du’a that Allah guides you toward the best recourse, keeping you within the confines of the Shari’ah and fulfil your goals as well, Ameen.

And Allah Ta’āla Knows Best

Mufti Faisal bin Abdul Hameed al-Mahmudi
Darul Iftaa wal Irshaad, Montreal
www.fatwa.ca