Source: http://qa.muftisays.com/?540
Question ID: #540
 
Question: student loan
asalaam walaikum
i asked a brother about taking the student loan (uk) and he told me that if the amount added is exactly at the rate of inflation then it is not interest. i am aware of the ruling given by mufti ibn adam howver, the brother i questioned follows the shaafi school of fiqh and so i was wondering whether there is a diffenece of opinion on this issue.
 
 
Answered by: Ulamaa ID 05 (Batley, England)
Date: 29/07/2005 10:59am

Answer:

There is no difference of opinion in the Shaafi school of thought in this particular issue. The Fatwa given by Mufti Ibn Adam Lunat regarding student loans (www.daruliftaa.com) is correct and will apply to both schools of thought.

And Allah knows best
Mufti Abubakr Karolia
Batley, U.K
Founder of the "Islamic Foundation for Theology and Research" (I.F.T.A.R)
 
www.MuftiSays.com