Student Loans



I need to know if it is permissible for me to take out interest based student loans to fund my education which I cannot afford otherwise out of pocket.



بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما


Wa alaykum as salaam wa rahmatullahi wa barakatuhu

Allah subhanahu wa ta'ala says in the Qur'an, "Allah has made business lawful and interest unlawful". (ٍSurah Baqara 2, Verse 275). Sayyidina 'Abdullah ibn Mas'ood (May Allah be please with him) says, "The messenger of Allah (May peace be upon him) cursed the one who takes interest, the one who gives it, the one who bears witness to it, and the one who records it" (Sunan Abi Dawud 3333).
In light of the given Qur'anic verse and hadith, it is evident that giving interest is undoubtedly haram. If taking a student loan mandates that interest is given only in the case that it is paid off later than the due date, it is permissible to take the loan provided that that you are absolutely confident that you will pay it off on time, to ensure that you will not pay any interest. If you are doubtful in regards to paying it off on time, you should abstain from taking it. Likewise, if paying interest is necessary regardless of when the loan is paid off, it should be avoided.
We suggest you find an alternative to funding your education. Perhaps you could apply for financial aid with FAFSA, or attend a community college to lower your tuition fees. And, if need be, you can work part time to pay it off. Whatever the case may be, giving interest should not be taken lightly and should be avoided.

والله اعلم

Allah subhanahu wa ta'ala knows best.

Taha Abdulkareem

Approved by Mufti Husain Ahmad Madani