student loan interest

sandy44

hi all,

I am gonna be soon going to university and can not afford to pay for the course using my own budget.

I am muslim and can not pay interest and understand student loans have interest payble on them. I can not pay that so here is my question

I understand that when I finish uni, I will have to pay it back after earning 21k or over or it is cleared within 25 years if not paid back.

i think my options are 1. take it and try to work part time less than 21k and pay it back after few years of saving so will pay the full balance at one go thus no need to pay it bakc using installment etc

2.ask a family member to lend me money, unlikely at 10k or more per year thus around 30k or more.

are there any muslim loans around or anything for muslims ?
or if i go with option 1 of paying it straight after uni, would i occure any interest, when does the interest clock start ticking from, from when it is paid back or from when it is taken out?

many thanks

dbullet

I thought Muslims were not allowed to charge interest, hence Sharia banks etc, I didn't know there were rules about paying it.

Either way, interest accrues daily from the day of your first payment, so you will pay back the capital and interest, just depends how much.

redpete

There are apparently sharia-compliant loans from certain financial institutions. As I understand it you would end up paying the same amount to the institution as you would if you had taken out a conventional loan but they use techncalities to comply with an interpretation of sharia law.

saker75

Many Muslims have no objection to the loans system.

You may find this link useful though - it gives you some other options.

ViolaLass

OP, please note that your option 1 would allow you to avoid paying installments, not interest. The interest will be added to the loan regardless of whether you are repaying any of it.

sandy44

many thanks for the replies. I don't think I can find any good solutions from the look of the things and may have to borrow from someone and expect them to be happy not receiving interest or don't know???:(

CLAPTON

surely there must be muslim sources you can ask for advice.. e.g. at a Mosque?

happycamel_2

As I understand it the usual get around is that it's called a fee rather than interest and is a pre agreed amount (say £2 per hundred pound borrowed per year) rather than a percentage. There are institutions that offer these but the net result (you pay the loan back plus an amount to repay the lender for their risk and their provision of the loan).

somethingcorporate

How cool would it be if we could all get out of paying interest due to our religion! where do I sign up?

ViolaLass

somethingcorporate wrote: »

How cool would it be if we could all get out of paying interest due to our religion! where do I sign up?

You don't pay less, it's just structured or worded differently.

bigadaj

somethingcorporate wrote: »

How cool would it be if we could all get out of paying interest due to our religion! where do I sign up?

It's easy to not pay back any interest, no need for a religion and as we see on here, many people sign up to it. You won't have a credit rating left but that's an option you may or may not take.