Uni Loans as a Muslim

I was under the impression that loans from the SLC don't accrue interest, so this would be a non-issue.

They do, but it's at a very low rate. It's the cheapest loan you could ever get, plus you're only legally required to pay it back at a manageable rate.

Reply 21

HaQ_mAn_

14

The interest is just inflation

Reply 22

Ifs

Original post by tonberry

Is it? LOL. I learn more random facts about that religion every day. Quality.

"That religion" lol gtfo

Posted from TSR Mobile

Reply 23

Lord_Mediocre

20

Original post by Origami Bullets

They do, but it's a relatively low rate

Posted from TSR Mobile

I thought it wasn't interest but in fact just the rate of inflation. That happens to be pretty reasonable give the widespread use of fiat currency.

Reply 24

Iqbal007

19

Original post by The_Mediocre_One

I thought it wasn't interest but in fact just the rate of inflation. That happens to be pretty reasonable give the widespread use of fiat currency.

They changed ít a bít.....

Your Circumstances Interest Rate
Whilst studying and until the April after leaving the course RPI, plus 3% (6.3% for 2013/14)
If you finish or leave your course before April 2016* RPI, plus 3% (6.3% for 2013/14) until the April after you leave your course, then RPI only until April 2016

http://www.slc.co.uk/services/interest-rates.aspx

Reply 25

ilikesweets

8

Taking an interest based loan is not permissible unless it is urgent. In this case, it should be done with the intention that it is a transaction without return, even though you know you will end up paying back the capital and interest. Moreover it should not be done with the intention of getting the loan with the condition of paying interest.

This is the opinion that I follow anyways. I'm sure taking a student loan is pretty urgent so taking it out with the intention I mentioned above should be permissable.

Reply 26

The_Internet

20

Original post by Origami Bullets

They do, but it's a relatively low rate

Posted from TSR Mobile

Yes and no. AFAIK, the 3K'ers pay back a loan at the base rate+x percent, as of when they applied for their course, so for me it's around 1.5%,which is lower than inflation, which means it's kinda pointless paying it back - well I can't see CPI being lower than 1.5%

And the 9K people pay inflation+interest on top of that. And I'm pretty sure it's OK religiously speaking to get a loan for things like this tbh OP

Original post by HaQ_mAn_

The interest is just inflation

See the above :smile:

Reply 27

tehFrance

17

Take the loan and do twenty hail Marys :h:

-----

Oh student loans were Islamic compliant, it was only now with the additional three percent in repayments that they're not Islamic ready.

Reply 28

sjaan

15

Wow. To the Muslims on the thread, be careful what you say. What your saying is completely wrong, wrong and wrong.

Taking a student loan(which has interest) is completely haram. Riba(interest) is seen as 36 times worse than ZINA!!!(adultery).

There are many other alternatives, such as Islamic banks, or perhaps, taking a gap year and working, then working in university, asking family relatives. Just remember its bad to spread false information.

Reply 29

sjaan

15

Original post by ilikesweets

Taking an interest based loan is not permissible unless it is urgent. In this case, it should be done with the intention that it is a transaction without return, even though you know you will end up paying back the capital and interest. Moreover it should not be done with the intention of getting the loan with the condition of paying interest.

This is the opinion that I follow anyways. I'm sure taking a student loan is pretty urgent so taking it out with the intention I mentioned above should be permissable.

Sorry to sound blunt, but your opinion is invalid. If your going to make your own interpretations then how exactly are you following the religion of Islam?

Reply 30

James82

17

It's just a choice you have to make, if you don't want the student loan then you'll have to find another way to fund your studies.

Reply 31

Compact

9

I took the loan. Honestly the whole "take a gap year and work" won't work. Some Unis allow you to pay your fees in installments as you study which is obviously a option if you REALLY don't want to take the loans. But you'd still need money to cover for you day to day living costs.

Go off and do some research, go to your local mosque for advice then come up with your own solution. One person here will say your hell-bound if you go anywhere near the SLC loans and another will say "go ahead, do what you want". At the end of the day both are commenting based on what they think is right or wrong, something you should be doing for yourself rather than others.

Reply 32

Skip_Snip

3

It's only religion, don't let it hold back your future :smile:

Reply 33

windy123

Original post by Compact

I took the loan. Honestly the whole "take a gap year and work" won't work. Some Unis allow you to pay your fees in installments as you study which is obviously a option if you REALLY don't want to take the loans. But you'd still need money to cover for you day to day living costs.

Go off and do some research, go to your local mosque for advice then come up with your own solution. One person here will say your hell-bound if you go anywhere near the SLC loans and another will say "go ahead, do what you want". At the end of the day both are commenting based on what they think is right or wrong, something you should be doing for yourself rather than others.

Remember that dunya is 0 compared to akhira bro. Before you done a loan which is considered 36 times worse than Zina, you should of asked scholar for his advice, not a mosque. Riba is considered one of the worst sins.

I hope you understand that.

Reply 34

windy123

Original post by Skip_Snip

It's only religion, don't let it hold back your future :smile:

This is only dunya, don't let it hold back your akhira.

Reply 35

windy123

Original post by oneabdi

I'm a Muslim and I would just like to ask if any fellow Muslims move into uni halls, how did you pay for your accommodation and tuition fees without a loan? If you did take out a loan, what made you do so?

I'm just interested as I would like to move into uni halls when I go to University but on top of moving there, I would have to pay accommodation as well as tuition fees. I'd like to pay them without a loan if possible.

abdi your actually wet :l out of all places, student room lol

ooh kill em

Reply 36

Skip_Snip

3

Original post by windy123

This is only dunya, don't let it hold back your akhira.

There isn't definetely an after-life (I think that's what that means?) while there is definetely an Earthly life.

When you die and there's nothing, you'll feel pretty silly for following a set of daft rules :tongue:

Reply 37

Theflyingbarney

15

To be honest, you may just have to decide what is more important to you - sticking to the exact letter of a frankly outdated law, or going on to university which may potentially make your life a lot better. In the modern age with financial services legislation and the like the rationale behind the loans ban (protecting people from unscrupulous loan sharks) doesn't really stand up, and the SLC are pretty much the most honest company you'd ever get a loan from.

Reply 38

Compact

9

Original post by windy123

Remember that dunya is 0 compared to akhira bro. Before you done a loan which is considered 36 times worse than Zina, you should of asked scholar for his advice, not a mosque. Riba is considered one of the worst sins.

I hope you understand that.

I formulated my opinion and ultimately my decision literally until the last moment when I applied for the loan which was in August. Bare in mind the deadline is long before that. I did consult a sheikh and had guidance from my family as well. I'm not here to tell the OP what he should and shouldn't do because that is between him and Allah. You and I cannot guide anyone, remember that.

36 times worse than Zina? Really bro!? You're not even looking at individuals circumstances and whether or not taking the loan is their only choice. This forceful fear your throwing around is not gonna help or guide anyone, but rather put them off what you're trying to say.

And I'm a girl :yes: