seeking halal alternatives to student finance

I've applied for both tuition loan and maintenance loan as I will have to live out for uni. I have been thinking hard about this for the past couple days, I don't want to commit sin but at the same time I dont have the finance to cover my living expenses and tuition fees. I don't have family that I can ask for help either, I only have my dad and starting next academic year three of his children will start university so he will be financially very burdened as well. I will inshallah start working as soon as I'm done with my a-levels and try to save up as much as possible. Taking a gap year or doing an apprenticeship is not possible for me. There are no apprenticeships available for what I want to do and I want to get my degree as soon as possible so I can start working and help my family out. Are there any halal alternative routes to taking out student finance that doesn't include family members or taking a gap year?

Reply 1

lnewman04

I'm not Muslim myself, but I’ve learned a bit about this because I have close friends who’ve faced the same issue with student finance. I just wanted to share some info in case it helps:
The UK government is launching a Sharia-compliant student finance option next year (2026 entry). It’s called Alternative Student Finance and will work similarly to the current system, but without interest (riba). It uses a Takaful-style model — so it's designed for students like you who want to avoid conventional loans.
🔗 Gov.uk announcement here
So if it’s possible to wait just one year even though I know that’s not ideal it could let you get your degree without compromising your values. Of course, that’s a big decision, and not everyone has the option to delay.
National Zakat Foundation (NZF) – they offer grants to Muslim students in financial need.
Many UK-based scholars have said that if a halal alternative truly doesn’t exist and you have no other realistic options, it may be permissible as a last resort to take the current loan especially if:

•

It’s for essential education, not luxury;

•

You intend to repay it as soon as possible;

•

You keep actively looking for halal alternatives.

This is based on the Islamic principle of “necessity removes prohibition” (darura). Still, different scholars have different views, so if you’re unsure, I’d recommend contacting Al Qalam or a trusted scholar for personal advice.
It’s great that you’re planning to work after A-levels. Universities often offer on-campus jobs that are flexible for students (library roles, admin, ambassador work, etc.), so try asking your chosen uni what’s available. Some also offer summer work before the academic year starts.

Reply 2

PS Reviewer

The takaful loan scheme is linked to LLE and so has been delayed to 2027 at the earliest.

The government has been promising this since 2012 so it isn’t something I would rely on

Depending on how much you borrow and your expected income after graduation there’s a strong chance that you may never repay any interest above inflation. It is worth looking at the money saving expert repayment calculators to work out. In this case it’s better to borrow the maximum available to increase the chances of the repayment period expiring before your repayments cover more than the loan plus inflation. The commercial interest would then be written off.

Reply 3

Aryannadeem

Original post by PQ

The takaful loan scheme is linked to LLE and so has been delayed to 2027 at the earliest.
The government has been promising this since 2012 so it isn’t something I would rely on
Depending on how much you borrow and your expected income after graduation there’s a strong chance that you may never repay any interest above inflation. It is worth looking at the money saving expert repayment calculators to work out. In this case it’s better to borrow the maximum available to increase the chances of the repayment period expiring before your repayments cover more than the loan plus inflation. The commercial interest would then be written off.

It's true that there have been delays, but back in 2012 the government began looking into the possibility of developing a sharia compliant loan. Now they have developed one, and I imagine only the logistics of rolling it out remain an issue. Having spoken to an MP on this matter, I am quite confident that the release date of Jan 2027 is probably quite realistic. Maybe once it does come out it would be possible to pay part of your course with it and part without? Either way, I would echo the advice of others here to try and pay upfront (work through uni etc), and yes that will be difficult but in'sha'Allah it will be possible and the loan will come into effect soon

Reply 4

PS Reviewer

Original post by Aryannadeem

I’m afraid your MP isn’t aware of the huge complexity and problems linked to the LLE implementation that they’ve linked the launch too.
The National Audit Office report was damning and the problems it highlighted haven’t been resolved.
Unfortunately the government and DfE are in denial about the problems so it’s likely to only get delayed very late in the day. If they can’t get it launched for January 2027 then they won’t delay it to September 2027 as that’s far too risky for such a massive change to student funding. It’d be delayed to January 2028 so they can use the low intake numbers in January to iron out the problems.