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  • Unique1
    replied
    Re: University Loans

    Originally posted by Abdurahman31 View Post
    salaam

    i just finished my first year at uni in the uk and this year my mum helped me out with the fees, i didnt take out any loans and still struggled a bit...

    i have no idea how iam going to do this course next year without taking out a loan, any advice.....

    also how does it work in the us/canada
    wa alaikumsalam
    get a job and save up.I was meant to start uni this sep but i rejected my place i dont want to take a loan.I might go next year

    Leave a comment:


  • Hiking
    replied
    Re: University Loans

    I'm in the same sitch and still need to find a job. It'd be best to get a full time job during the hols and make as much as you can. Also, are you eligible for the maintenance grant? It's non-repayable and can be as much as two and a half grand

    Leave a comment:


  • Abdurahman31
    replied
    Re: University Loans

    salaam

    will be starting a part time job in the next week but i could imagine how hard it would be i mean i still wanna pay my mum back she paid for my fees and my hajj package last year.

    iam thinking of doing an NHS course cus they pay for the tuition fees

    either

    physiotherapy or
    occupational therapy or
    speech and language therapy

    iam so confused:(

    Leave a comment:


  • (*_Hamzah
    replied
    Re: University Loans

    Cant you find a part time job?

    More information here:

    http://www.isite.salford.ac.uk/money...loans/riba.php

    Islamic Sharia law prohibits ‘riba’ or usury, which means the paying and receiving of interest for profit. The law is usually applied to excessive or unreasonable interest, but some Muslims believe it applies to all interest, including the inflation-only interest that is paid on student loans. We have prepared this page of information for Muslim students who find that they may need to take a loan to finance their education, and who have questions or concerns about ‘riba’. This is especially important for new students from 2006/7, as the government has introduced tuition fee loans for new undergraduate students, in addition to the maintenance loans to pay living costs.

    Interest-free overdraft facility
    Loans for study
    Sharia-compliant financing

    Interest-free overdraft facility
    Most UK banks offer home undergraduates a student bank account with an overdraft facility that is interest-free up to a specified limit. In answer to a question about student overdrafts on the Islam Online website, Dr. Monzer Kahf, economist and Islamic scholar, advises that using such an interest-free overdraft is permissable “in spite of the fact that the bank is conventional and deals with other people on [an] interest basis. What matters is your relation with the bank.” Read the article

    Loans for study
    The UK government offers eligible students maintenance loans and, for new students from 2006/7,tuition fee loans. These loans do incur interest on the repayments, but this is set at the rate of inflation, not at a commercial rate. Therefore, the value of the amount repaid is the same as the value of the amount borrowed.

    Islamic Opinion is divided on whether this constitutes Riba. In response to a a query about loans on the Central Mosque website, Muhammad ibn Adam al-Kawthari of Darul Iftaa, Leicester, says that it is Riba, advising that “when a loan is paid back, then the rate of inflation is not considered according to Shariah. One can only claim back exactly the amount which was given as loan.” Read the full query .

    However, a similar discussion on the Understanding Islam website concludes that inflation-only interest does not constitute Riba: "if a person demands his principal amount in real terms, that is if he demands the same purchasing power which he had initially lent, such adjustment shall not fall under the head of Riba, and would therefore, not be prohibited." Read the full discussion.

    A spokesperson for the Department for Education and Skills, quoted in an article in The Guardian in April 2004 said: “We appreciate the Muslim position on borrowing. But, it is important to remember that student loans do not incur a real rate of interest and the government does not make any profit out of these loans. The uptake of student loans amongst Muslim students compares favourably with other groups.” Read the full article

    Whether or not you consider inflation-only interest on government student loans to be Riba, the interest paid on bank loans commonly used by students does attract a commercial rate of interest, and is therefore Riba. For example the Career Development Loan and Professional Study Loan. However, Dr. Muzammil Siddiqi, former president of the Islamic Society of North America (ISNA), has advised that where it is crucial to a student’s education, they may choose to take a loan even if it does include Riba. He is quoted in reply to a question about UK-style Student Loans on Islam Online:

    “…if a student is in dire need to pursue his/her studies and no loans are available without interest, then in that case, under the rule of necessity, it will be permissible for the student to take the minimum loan and he/she should pay it back as soon as possible. This is of course, in the case when pursuing that field of education is also very important for the future of the Muslim student. But if a study is not necessary and it is only as a matter of enhancement of one’s knowledge, then one should not take loans with interest.” Read the full discussion.
    Last edited by (*_Hamzah; 18-05-08, 02:27 PM.

    Leave a comment:


  • Abdurahman31
    started a topic University Loans

    University Loans

    salaam

    i just finished my first year at uni in the uk and this year my mum helped me out with the fees, i didnt take out any loans and still struggled a bit...

    i have no idea how iam going to do this course next year without taking out a loan, any advice.....

    also how does it work in the us/canada
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