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Are Muslims allowed student loans?

Discussion in 'General Discussion' started by lunar, 20 Aug 2018.

  1. lunar

    Gangster

    Joined: 18 Jul 2015

    Posts: 366

    Location: London

    My daughter did well enough to get a University place for this September. We were all very pleased. However, she was crying.
    I asked her how her application for a student loan was going. She stated that she cannot get a student loan as it involves giving interest (6.1%).
    She then said the options were for her to work and save money to pay for the course or that the bank of mummy and daddy will pay the fees.
    I asked her where she obtained this idea that Muslims cannot get student loans. She refused to answer. My impression is she got it from the Internet.
    It looks like I will pay the fees and my daughter will return the money to me when she starts work. My concern is I will probably not want the loan paid back!
    Am I a mug?
     
  2. bignev72

    Wise Guy

    Joined: 22 Mar 2012

    Posts: 1,123

    Why can't she get a loan? It doesn't seem clear?
     
  3. robfosters

    Caporegime

    Joined: 1 Dec 2010

    Posts: 35,297

    Location: Welling, London

    Muslims cannot take loans where interest is incurred.
     
  4. Ekim

    Mobster

    Joined: 18 Oct 2002

    Posts: 2,896

    Location: London

    Any one can take a student loan. However no one is exempt from the interest which might not be compatible with their faith. So a Muslim is more than welcome to a loan, but it’s up to them on how they reconcile that with their faith.
     
  5. Malevolence

    Capodecina

    Joined: 21 Oct 2011

    Posts: 14,738

    Nobody else's fault but their own then.
     
  6. tom_nieto

    Capodecina

    Joined: 18 Oct 2002

    Posts: 10,989

    Location: Birmingham

    As I understand it, some interpretations of Islam forbid taking interest on monetary loans.

    Doesn’t really matter what I think, if your daughter doesn’t want to take the loan then it’s up to her. If you want to pay the fees, it’s up to you! The SLC won’t discriminate on racial/religious grounds so she is free to decide for herself whatthe right thing to do is.

    Sounds like you all need to sit down and have a discussion amongst yourselves as to how you all want to proceed.
     
  7. robfosters

    Caporegime

    Joined: 1 Dec 2010

    Posts: 35,297

    Location: Welling, London

  8. peterwalkley

    Mobster

    Joined: 23 Feb 2009

    Posts: 3,566

    Location: South Wirral

    GD is not the place to ask this. Talk to your Imam.
     
  9. Malt_Vinegar

    Don

    Joined: 20 Oct 2002

    Posts: 15,195

    Location: In a house

    I was under the impression that is was allowed for the sake of Education/emergency/caring for sick, but not much else?
     
  10. Mason-

    Soldato

    Joined: 18 Jun 2010

    Posts: 5,596

    Location: Essex

    Usury is haram fam.
     
  11. Yas786

    Caporegime

    Joined: 18 Oct 2002

    Posts: 47,866

    Location: All over the world...

    Exactly. Nothing stopping her from taking a loan, it’s her own decision whether she wants to take it or not. There are plenty of Muslims that I know that are happy to take loans with interest and pay it back.
     
  12. mmj_uk

    Capodecina

    Joined: 26 Dec 2003

    Posts: 24,314

    IIRC there was a thread on here a while ago with everyone complaining about an Islamic compliant bank account that offered interest free overdrafts so I'm guessing it must be.
     
  13. Diddums

    Capodecina

    Joined: 24 Oct 2012

    Posts: 19,779

    Location: London

    [​IMG]
     
  14. Dis86

    Capodecina

    Joined: 23 Dec 2011

    Posts: 24,867

    Location: Northern England

    Love how so many on here know more about the faith that your daughter follows than you!
     
  15. Hyburnate

    Capodecina

    Joined: 29 Jul 2011

    Posts: 14,408

    Location: Near Northants / MK

    I’m looking forward to this one... this is quite interesting really, @Diddums pass the popcorn!
     
  16. Diddums

    Capodecina

    Joined: 24 Oct 2012

    Posts: 19,779

    Location: London


    Probably the most researched topic in GD, second only to ebay scams.
     
  17. Diddums

    Capodecina

    Joined: 24 Oct 2012

    Posts: 19,779

    Location: London


    Sorry fella, I'm probably gonna need more :D
     
  18. robfosters

    Caporegime

    Joined: 1 Dec 2010

    Posts: 35,297

    Location: Welling, London

    All those popcorn posts are unhelpful and not needed.
     
  19. Diddums

    Capodecina

    Joined: 24 Oct 2012

    Posts: 19,779

    Location: London


    99% of my posts are unhelpful and not needed.
     
  20. Participant

    Caporegime

    Joined: 13 May 2003

    Posts: 31,328

    Location: Warwickshire

    Surely all are free to finance their educations however they wish. SLC loans are just one way to achieve this. The market is out there and if they can find someone to lend them money at 0%, or structure it differently such that it sidesteps the rules, or whatever, then fine. I'm not sure how UKGOV can intervene.