{"id":11011,"date":"2019-03-12T17:51:47","date_gmt":"2019-03-12T17:51:47","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/?p=11011"},"modified":"2019-03-12T17:51:47","modified_gmt":"2019-03-12T17:51:47","slug":"i-had-taken-uk-student-loan-and-there-is-interest-every-year","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/i-had-taken-uk-student-loan-and-there-is-interest-every-year\/","title":{"rendered":"I had taken UK Student loan and there is interest every year."},"content":{"rendered":"

\n\tFatwa ID: 02740<\/strong><\/span><\/span>\n<\/p>\n

\n\tAnswered by: Maulana Muddasser Dhedhy\u200b <\/span><\/span><\/strong>\n<\/p>\n

\n\tQuestion:<\/strong><\/u><\/span><\/span>\n<\/p>\n

\n\tAssalamu Alaikum Wa Rahmatullah!<\/span><\/span>\n<\/p>\n

\n\tI had previously taken a large Government student loan in the UK and since made <\/span><\/span>tawbah<\/span><\/span>. There is interest each year on these loans.<\/span><\/span>\n<\/p>\n

\n\tThe annual loan compulsory repayment rate is set at 9% of your income over the £25,000 a year threshold, and are written off after 30 years\/upon death. There is an option to pay a higher percentage of your income on repayments as part of a voluntary repayments scheme to pay off your debt quicker.<\/p>\n

\tMy question is, is it recommended and\/or even obligatory on me to pay back as much as I can through voluntary repayments to pay off the loan quicker? <\/span><\/span>\n<\/p>\n

\n\tAnd does the ruling change depending on whether or not I am going into a high earning job (i.e. if I was going into a job earning £26,000pa whereby I would not pay back all the money at the compulsory repayment rate before it's written off after 30 years vs if I was going into a job earning £100,000pa whereby it is envisaged that I would pay off the whole debt+interest through compulsory repayments before the 30 year deadline after which it is written off)<\/span><\/span><\/p>\n

\t \n<\/p>\n

\n\t\u0628\u0650\u0633\u0652\u0645\u0650 \u0627\u0644\u0644\u0647\u0650 \u0627\u0644\u0631\u0651\u064e\u062d\u0652\u0645\u0646\u0650 \u0627\u0644\u0631\u0651\u064e\u062d\u0650\u064a\u0652\u0645<\/strong><\/span><\/span>\n<\/p>\n

\n\tIn the name of Allah, the Most Gracious, the Most Merciful.<\/u><\/strong><\/span><\/span>\n<\/p>\n

\n\tAnswer:<\/u><\/strong><\/span><\/span>\n<\/p>\n

\n\tAssalamu Alaikum Wa Rahmatullahi Wa Barakaatuh,<\/span><\/span>\n<\/p>\n

\n\tGovernment student study loan schemes constitute interest as the total amount payable is more than what was initially borrowed. Hence, one should endeavour to find an alternative to finance their studies.<\/span><\/span>\n<\/p>\n

\n\tHowever if one has already taken the loan, they should repent and aim to pay off the whole as quickly as possible. Given that the loan amount is indexed annually based upon the UK Retail Price Index (RPI) and one’s circumstances, the amount of interest will increase every year. By paying off the loan quickly through voluntary repayments, the total amount of interest one will be required to pay will be less.<\/span><\/span>\n<\/p>\n

\n\tIf one decides not to pay off the debt hoping for it to be wiped off once they reach a particular age, during this period the loan will keep accumulating interest due to indexation which is not permissible.[1]<\/sup><\/sup><\/a><\/span><\/span>\n<\/p>\n

\n\t \n<\/p>\n

\n\tOnly Allah Ta'ala knows best<\/span><\/span>\n<\/p>\n

\n\tWritten by Maulana Muddasser Dhedhy<\/span><\/span>\n<\/p>\n

\n\tChecked and approved by Ustadha Sabrina al-Faarsiyyah<\/span><\/span>\n<\/p>\n

\n\tDarul Ifta Birmingham<\/span><\/span>\n<\/p>\n

\n\t<\/a> <\/b><\/span><\/span>\n<\/p>\n

\n\t <\/b><\/span><\/span>\n<\/p>\n

\n\t \n<\/p>\n

\n

\n\t[1]<\/sup><\/sup><\/a> \u0628\u062d\u0648\u062b \u0641\u064a \u0642\u0636\u0627\u064a\u0627 \u0641\u0642\u0647\u064a\u0629 \u0645\u0639\u0627\u0635\u0631\u0629 \u062c 1 \u0635 170-196. \u0645\u0643\u062a\u0628\u0629 \u062f\u0627\u0631 \u0627\u0644\u0639\u0644\u0648\u0645 \u0643\u0631\u0627\u062a\u0634\u064a<\/span><\/span>\n<\/p>\n

\n\t\u200b<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Fatwa ID: 02740 Answered by: Maulana Muddasser Dhedhy\u200b Question: Assalamu Alaikum Wa Rahmatullah! I had previously taken a large Government student loan in the UK and…<\/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":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/11011"}],"collection":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/comments?post=11011"}],"version-history":[{"count":1,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/11011\/revisions"}],"predecessor-version":[{"id":11012,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/posts\/11011\/revisions\/11012"}],"wp:attachment":[{"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/media?parent=11011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/categories?post=11011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daruliftabirmingham.co.uk\/home\/wp-json\/wp\/v2\/tags?post=11011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}