Title

Funding my studies with an interest bearing loan

Question

if a student had to take out an interest bearing loan (haram) to fund their university studies, will any job they subsequently get due to this degree also provide haraam earnings?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, dealing with interest is Haram and a major sin. Allah Taala has issued severe warnings for the one who deals with interest. Allah Ta’āla states: 

يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ. فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ (سورة البقرة 278-279) 

Translation:  O you who have believed, fear Allah and give up what remains (due to you) of interest if you are believers. And if you do not, then be informed of a war (against you) from Allah and His Messenger. But if you repent, you may have your principal, you do no wrong, nor are you wronged. 

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ (سورة البقرة 275)

Translation: Those who consume interest cannot stand (on the Day of Resurrection) except as one stand who is being beaten by Satan into insanity. That is because they say, "Trade is like interest." But Allah has permitted trade and has forbidden interest. So, whoever has received a warning from his Lord and stops, he may have what is past, and his affair rests with Allah. But whoever returns to (dealing in interest or usury) those are the companions of the Fire; they will abide eternally there.

Although you will be sinful for taking out a student loan, the income of the job you get because of the degree will be Halal, since you are offering a valid service and receiving payment for that service. However, we advise you to seep asking Allah for forgiveness and pay off the student loan as soon as possible. You may take a Qardh Al-Hasanah (interest-free loan) from friends and family to quickly pay off your debt.

And Allah Ta’āla Knows Best

Shakib Alam

Student - Darul Iftaa

Pennsylvania, USA

Checked and Approved by,

Mufti Ebrahim Desai.