{"id":21693,"date":"2021-05-17T19:47:31","date_gmt":"2021-05-17T19:47:31","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/?p=21693"},"modified":"2021-05-17T19:47:31","modified_gmt":"2021-05-17T19:47:31","slug":"paying-back-the-governmental-student-loan-with-interest","status":"publish","type":"post","link":"http:\/\/daruliftabirmingham.co.uk\/home\/paying-back-the-governmental-student-loan-with-interest\/","title":{"rendered":"Paying Back the Governmental Student Loan With Interest"},"content":{"rendered":"

Fatwa ID: 05297<\/strong><\/span><\/p>\n

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Answered by: Mufti Eunus Ali<\/strong><\/span><\/p>\n

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Question<\/u><\/strong><\/span><\/p>\n

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I live in Australia, and we can have the government pay our university fees whilst we study. When we graduate, we then pay the government 125% of what they paid for us during our studies.<\/span><\/p>\n

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Is this considered interest or just a profit? We never get the money, the government just pays the uni on our behalf. And then we pay the government at a later date. If we got given the money and then had to pay back 125% I know that would definitely be interest, but I am wondering if it is also interest in this case.<\/span><\/p>\n

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In the name of Allah, the Most Beneficent, the Most Merciful.<\/strong><\/span><\/p>\n

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Answer<\/strong><\/span><\/p>\n

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When the student agrees to or applies for the government or any other finance body for a student loan, it is the student appointing them as their representative to pay the tuition fee on their behalf to the university which the student will later payback.<\/span><\/p>\n

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Hence the above will be considered as \u2018interest\u2019 and not profit as it is a loan that will have to be paid back at a higher rate.<\/span><\/p>\n

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Therefore this method needs to be avoided.<\/span><\/p>\n

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A possible alternative could be that one borrows money from family and friends to pay for tuition.<\/span><\/p>\n

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Only Allah knows best<\/span><\/p>\n

Written by Mufti Eunus Ali<\/span><\/p>\n

Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

DarulIfta Birmingham<\/span><\/p>\n

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Fatwa ID: 05297   Answered by: Mufti Eunus Ali   Question   I live in Australia, and we can have the government pay our university…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/21693"}],"collection":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=21693"}],"version-history":[{"count":2,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/21693\/revisions"}],"predecessor-version":[{"id":21761,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/21693\/revisions\/21761"}],"wp:attachment":[{"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=21693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=21693"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=21693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}