Fatawa Answer

Question: Student loan interest pay by government

ID: 1420

Name: Dealings and Transactions

Question

A Subsidized Stafford Loan is a need-based loan. The Federal Government pays the interest while you are enrolled in school. 

In other words government pay the interest instead of student

Is above loan permissible?

Answer

بسم اللہ الرحمن الرحیم

الجواب وباللہ التوفیق

Interest is a major component of this loan. The debtor is required to pay interest on this loan after completion of his schooling, therefore it is not permissible.

اَحَلَّ اللّٰہُ الْبَیْعَ وَحَرَّمَ الرِّبٰوا(البقرۃ: ۲۷۵) 

وَذَرُوْا مَا بَقِیَ مِنَ الرِّبٰوا اِنْ کُنْتُمْ مُؤْمِنِیْنَ(البقرۃ: ۲۷۸) 

عن ابن مسعود رضي اللّٰہ عنہ قال: لعن رسول اللّٰہ صلی اللّٰہ علیہ وسلم آکل الربوا وموکلہ … الخ۔ (صحیح مسلم رقم: ۱۵۹۷) 

فقط واللہ اعلم بالصواب

Answered On: Tuesday, Feb 07, 2023 | N/A

Answered By: Mufti Mohammed Ataur Rahman Sajid

Checked By: Mufti Mohammed Navalur Rahman