DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - University Tuition Fees in the UK

**seodiary** · 09-04-2012, 02:56 AM

Well, as far as I am aware the student loan is something most people are eligible for.
this means you do not need to worry about paying £9,000 in that year.
Secondly, it must be noted, that this student loan increases only by the inflation rate. That means the real interest rate is by law 0%. Remember there is a difference between real and nominal interest rate.
Because we live in a fiat money system, there is a case to be made that perhaps the loan you take can be regarded as sadaqa hasana (I am not giving the scholarly ruling on it, only my own). You are paying it back, automatically from your salary once you start work. it also kicks in at a high level, from over £21k.
So if you make 22k per annum, you will pay 9% of 1k which is £90 per annum. if you make 41k per annum, you will pay 1.8k per annum back.
It is designed as a way to alleviate hardship, not a mechanism to create hardship.

So the real question is, do you consider a loan, which is at 0% real interest rate to be haram?
if you wish to stay away from doubtful matters, fair enough. i would advise you in that case to work part time and study part time, e.g. through Open University.

I thought the brother was referring to taking out student loans and the interest associated with them?
~
Student loans do only charge inflation only but this is not the case with the £9000. They are now adding on commercial interest so what you wrote doesn't apply. It does however affect me with the old system. I had looked into this earlier and many scholars said even inflation interest is still haraam so even then I was wary and decided to follow the route of a low paid job to avoid even the inflation interest.

In hindsight, I wish I had gone for an apprenticeship. I think it would have been a lot less hassle and it would have kept me away completely from such doubtful matters.

09-04-2012, 02:56 AM	#4
seodiary Join Date Oct 2005 Posts 488 Senior Member	Well, as far as I am aware the student loan is something most people are eligible for. this means you do not need to worry about paying £9,000 in that year. Secondly, it must be noted, that this student loan increases only by the inflation rate. That means the real interest rate is by law 0%. Remember there is a difference between real and nominal interest rate. Because we live in a fiat money system, there is a case to be made that perhaps the loan you take can be regarded as sadaqa hasana (I am not giving the scholarly ruling on it, only my own). You are paying it back, automatically from your salary once you start work. it also kicks in at a high level, from over £21k. So if you make 22k per annum, you will pay 9% of 1k which is £90 per annum. if you make 41k per annum, you will pay 1.8k per annum back. It is designed as a way to alleviate hardship, not a mechanism to create hardship. So the real question is, do you consider a loan, which is at 0% real interest rate to be haram? if you wish to stay away from doubtful matters, fair enough. i would advise you in that case to work part time and study part time, e.g. through Open University. I thought the brother was referring to taking out student loans and the interest associated with them? ~ Student loans do only charge inflation only but this is not the case with the £9000. They are now adding on commercial interest so what you wrote doesn't apply. It does however affect me with the old system. I had looked into this earlier and many scholars said even inflation interest is still haraam so even then I was wary and decided to follow the route of a low paid job to avoid even the inflation interest. In hindsight, I wish I had gone for an apprenticeship. I think it would have been a lot less hassle and it would have kept me away completely from such doubtful matters.
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