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Thread: Student loan for university

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    Senior Member Waleeja's Avatar
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    Default Student loan for university

    Many students take out loans of up to 9000 annually for university, which are supposed to be repaid once the student has left university and is earning more than 15000 annually.

    Some students know that they will not be going on to getting a job, or atleast not working at a job which pays 15000. Thus, they know that they will not be able to pay the loan back, and have no intention of paying it back.

    Is this permissible?


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    Default Re: Student loan for university

    Quote Originally Posted by Waleeja View Post
    Many students take out loans of up to 9000 annually for university, which are supposed to be repaid once the student has left university and is earning more than 15000 annually.

    Some students know that they will not be going on to getting a job, or atleast not working at a job which pays 15000. Thus, they know that they will not be able to pay the loan back, and have no intention of paying it back.

    Is this permissible?
    Before raising the issue of paying back , you should focus on the validiy of usury-based loan in Islam. This usury based loan is completely haram .


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    Default Re: Student loan for university

    To take out a loan means you are making a trust to pay it back. If you have no intention to do so, then you are breaking that trust and it will be haraam. One of the
    characteristics of a hypocrite is he breaks the trusts entrusted to him. But as pawlak said, the very fact that the loan will be paid back with interest makes the loan Haraam too.
    I am also in the same position as you I'm afraid.


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    Senior Member Waleeja's Avatar
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    Default Re: Student loan for university

    Quote Originally Posted by pawlak View Post
    Before raising the issue of paying back , you should focus on the validiy of usury-based loan in Islam. This usury based loan is completely haram .
    I am aware of this. But because they are certain of their future employment, or rather unemployment, they have no intention of repaying it. Interest-free or not


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    Default Re: Student loan for university

    See my post sister, interest free or not that is completely Haraam and un-Islamic and a trait of the Hypocrites (who will be in the lowest pits of hell). Mind you, that doesn't mean
    they are hypocrites per se, rather they have one quality of a hypocrite, which is bad enough.


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    Senior Member Waleeja's Avatar
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    Default Re: Student loan for university

    Quote Originally Posted by تفويض View Post
    See my post sister, interest free or not that is completely Haraam and un-Islamic and a trait of the Hypocrites (who will be in the lowest pits of hell). Mind you, that doesn't mean
    they are hypocrites per se, rather they have one quality of a hypocrite, which is bad enough.
    This issue is only raised because of the government's law, which states that the person must pay it back only when they are earning 15k per annum. If the person knows they won't be earning that much, then they know they don't have to repay it. Therefore they also know that the interest doesn't play a part.


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    Quote Originally Posted by Waleeja
    Many students take out loans of up to 9000 annually for university, which are supposed to be repaid once the student has left university and is earning more than 15000 annually.

    Some students know that they will not be going on to getting a job, or atleast not working at a job which pays 15000. Thus, they know that they will not be able to pay the loan back, and have no intention of paying it back.

    Is this permissible?
    What you on about? Even cleaners earn more than 15K!! Anyone not aiming to get 20k plus in his/her first year of employment, shouldn't even bother going to uni and wasting government resources & time! That's what you call waste of space lol


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    Senior Member Waleeja's Avatar
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    Default Re: Student loan for university

    Quote Originally Posted by Somali_Lioness View Post
    What you on about? Even cleaners earn more than 15K!! Anyone not aiming to get 20k plus in his/her first year of employment, shouldn't even bother going to uni and wasting government resources & time! That's what you call waste of space lol
    Resourceful as your post is, it does not answer my question


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    Default Re: Student loan for university

    Quote Originally Posted by Waleeja View Post
    This issue is only raised because of the government's law, which states that the person must pay it back only when they are earning 15k per annum. If the person knows they won't be earning that much, then they know they don't have to repay it. Therefore they also know that the interest doesn't play a part.
    Ahh I see what you mean now, I was thinking of something else my sister said once in order to scam the system. Apologies. In that case it would be permissible, since the terms of the contract do say the loan is only payable if you earn over 15k. However, the only issue which may arise from this is the time frame this is applicable for.

    Your Student Loan is automatically written off if you have not paid it off within 25 years. So as soon as you hit 25 years, whatever you owe SLC, it will be written off. Now if the person in question can guarantee themselves that for the next 25 years after graduating they will not earn a penny above 15k and thus not one penny will be paid back to the SLC, then I guess, with the terms of the contract that would be permissible.

    But 25 years is a very long time, and as Sister Somali Lioness said 15k is usually standard, besides, the want for money can tempt the person to do higher paid jobs earning more than 15k in which SLC will take money out.

    But in answer to your question, if for 25 years they dont earn a penny above 15k, then it is permissible as it is in line with the contract as far as I know, unless their is some small print I missed.


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    Quote Originally Posted by Waleeja

    Resourceful as your post is, it does not answer my question
    Well I just tried to put things in context. In terms of answering your question, there are more knowledgeable brothers and sisters in here, so I'm not attempting anything. Given the fact that I also took out loan to finance my uni fees and I am currently paying it back with interest... May Allah forgive me for my ignorance... I don't wanna rot in hell


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