Fatwa on Student Loans

2006-03-11 Question & Answer Session by Shaykh Saalih As-Suhaymi

General Question & Answer Session

by 

Shaykh Saalih as-Suhaymee حفظه الله

on March 11th, 2006

Introduction

The Shaykh حفظه الله is a professor at the Islaamic University in Madeenah and a teacher at Masjid an-Nabawee (Prophet’s Masjid). He is a well-known scholar from Madeenah and studied under the aimmah of our time. From amongst his teachers are Shaykh Abdul Azeez ibn Baaz, Shaykh Muhammad ibn Salih al-Uthaymeen and Shaykh Muhammad Naasiruddeen al-Albaanee رحمهم الله.

The Shaykh began with the greeting of Salaam and then mentioned khutbatul-haajah, praised Allaah سبحانه و تعالى and sent the salaat and salaam upon our Prophet Muhammad صلى الله عليه و سلم, his family and all his Companions.

The Shaykh حفظه الله then proceeded by saying: “Dear brothers I will give a talk for 3 minutes then I will leave the floor open for questions inshaa Allaah.”

Having Taqwah of Allaah سبحانه و تعالى

My first advice to you all is the advice of fearing Allaah سبحانه و تعالى i.e. having taqwa of Allaah سبحانه و تعالى both in secret and in the open, in times of hardship and ease, and in all your conditions.

Taqwa of Allaah, in summary means that one does whatever he is commanded to do, and he stays away from everything which he is prohibited from, in the areas of one’s belief (Aqeedah) and the area of one’s worship to Allaah سبحانه و تعالى (Eebaadah) and in his methodology and his approach to practically manifesting and establishing Islaam (Ahkaam, Aadaab, Aqlaaq and Manhaj). In all of this he must have taqwa of Allaah. Taqwah of Allaah سبحانه و تعالى is the reason for every success in this life and the Hereafter as Allaah سبحانه و تعالى says:

وَمَن يَتَّقِ اللَّهَ يَجْعَل لَّهُ مَخْرَجاً {2} وَيَرْزُقْهُ مِنْ حَيْثُ لا يَحْتَسِبُ

{…And whosoever fears Allâh and keeps his duty to Him, He will make a way for him to get out (from every difficulty).
And He will provide him from (sources) he never could imagine...} [at-Talaaq 65:2-3]

And also Allaah سبحانه و تعالى says:

وَمَن يَتَّقِ اللَّهَ يَجْعَل لَّهُ مِنْ أَمْرِهِ يُسْراً

{… and whosoever fears Allâh and keeps his duty to Him, He will make his matter easy for him.} [at-Talaaq 65:4]

And:

وَمَن يَتَّقِ اللَّهَ يُكَفِّرْ عَنْهُ سَيِّئَاتِهِ وَيُعْظِمْ لَهُ أَجْراً

{…and whosoever fears Allâh and keeps his duty to Him, He will expiate from him his sins, and will enlarge his reward.} [at-Talaaq 65:5]

Many of the people complain about hardships that they experience but they do not take the path that would make it easy for them to solve their problems – and that is having taqwa of Allaah both in secret and in the open.

It is not possible to attain taqwa of Allaah سبحانه و تعالى without seeking to have knowledge and Fiqh (understanding) in the Deen of Allaah سبحانه و تعالى. Allaah سبحانه و تعالى says in the Qur’aan:

شَهِدَ اللّهُ أَنَّهُ لاَ إِلَـهَ إِلاَّ هُوَ وَالْمَلاَئِكَةُ وَأُوْلُواْ الْعِلْمِ قَآئِمَاً بِالْقِسْطِ لاَ إِلَـهَ إِلاَّ هُوَ الْعَزِيزُ الْحَكِيمُ

{Allâh bears witness that Lâ ilâha illa Huwa (none has the right to be worshipped but He), and the angels,
and those having knowledge (also give this witness); (He always) maintains His creation in justice.
Lâ ilâha illa Huwa (none has the right to be worshipped but He), the All-Mighty, the All-Wise.}

[Aal-‘Imraan 3:18]

Likewise He سبحانه و تعالى said:

وَاتَّقُواْ اللّهَ وَيُعَلِّمُكُمُ اللّهُ

{… So be afraid of Allâh; and Allâh teaches you…} [al-Baqarah 2:282]

Therefore, the way to achieve taqwa of Allaah سبحانه و تعالى is to have knowledge of this Deen. It is obligatory upon you to know what you have been prevented from i.e. what has been made prohibited for you, so that you may stay away from it and also, to know that which Allaah سبحانه و تعالى loves and is pleased with so that you do it, and that which angers Allaah سبحانه و تعالى, so that you stay away from it. There is no way that this can be manifested except by having knowledge.

In order for the Muslim to achieve the beneficial knowledge and righteous actions then it is upon him to ask those people who have knowledge. They are the ‘Ulema ar-Rabbaaniyeen – those scholars who are known for their ability to cultivate and nurture and who are known for their great knowledge. They are the ones who do not deviate from the straight path. They are the Major Scholars – the ones that Allaah سبحانه و تعالى has commanded us to return to in His statement:

فَاسْأَلُواْ أَهْلَ الذِّكْرِ إِن كُنتُمْ لاَ تَعْلَمُونَ

{…So ask the people of the Reminder if you do not know.} [an-Nahl 16:43, al-Anbiyaa’ 21:7]

Likewise those are the ones that the Prophet صلى الله عليه و سلم has commanded us to return our affairs to, as he صلى الله عليه و سلم said in a hadeeth: “Verily knowledge (‘ilm) is not attained except by seeking it, just as having forbearance (hilm) is not achieved except by seeking it.” [1]

Conclusion 

I want to conclude my statement by drawing your attention to something that is very important. That is to emphasize the importance of returning back to the Scholars especially regarding fataawa (religious verdicts). We should not be fooled by those people who put themselves forth on the satellite channels etc. and they give fataawa without any knowledge. They give fataawa making permissible (halaal) that which Allaah سبحانه و تعالى made prohibited (haraam) etc. Even though we find that the Sahabaah رضى الله عنهم didn’t like to issue fataawa – rather when someone came to ask them a question they would refer the questioner to another one of the Sahabaah even if they had a difference of opinion concerning some of the Fiqh issues in the Religion. So, what about those people who have no right to be issuing fataawa, and yet they go ahead and make permissible that which Allaah سبحانه و تعالى made prohibited.

Likewise, I would like to draw your attention to another point – to stay away from the differing that you may find amongst some of the people and the differing that you may find amongst some of the Students of Knowledge and even amongst some of the people who are above that level, who have been given knowledge, but they have put some things upon others that are not necessary or appropriate and likewise the other one has done that to the other one. It is not appropriate for us to involve ourselves in this type of differing, rather we should consider this to be fitnah and stay far away from it, and we ask only those questions that concern us and our Religion and we stay away from these types of fitnah. And hopefully Allaah سبحانه و تعالى will reconcile that which has happened between some of the People of Knowledge.


The Shaykh said that with that inshaa Allaah we ask Allaah سبحانه و تعالى for us and for you all, for everyone, beneficial knowledge and righteous actions, and inshaa Allaah we can move on to the questions. The questions should be those that have a purpose behind them and they should be knowledge-based.

The Shaykh said to excuse him for exceeding 3 minutes as the translation was longer than 3 minutes.

QUESTIONS & ANSWERS

1. Question: In the US, we have a student loan in which the government pays the interest while the student is in school, and after the student finishes school, he will have to pay the principal plus interest. But if the student pays the loan back while in school, he will not have to pay the interest. Is it permissible to sign a contract for this type of loan if the student anticipates that he will pay off the entire amount before he graduates?

Answer: Regarding this issue we want to look at it from a couple angles. The first angle is that we want to distinguish between the one who has accepted Islaam and this is his condition and the one who was already a Muslim when involving himself in this transaction.

As it relates to the one who has accepted Islaam, he is not accountable for these types of transactions in the Sight of Allaah سبحانه و تعالى as the Prophet صلى الله عليه و سلم accepted money from the people which they had prior to accepting Islaam. So the money that a person acquired before Islaam then it stays in his possession as he had no knowledge of the Islaamic rulings before he accepted Islaam, and likewise, Islaam erases/demolishes anything that came before it from sins.[2]

Some of the Sahaaba accepted Islaam and they (previously) used to trade in alcohol products, gambling and these types of things and it has not been reported that the Prophet صلى الله عليه و سلم told them to give back any of that money or to leave it off. This is except for interest i.e. if he is one that someone owes interest to then he has to give up the right to interest because at this point he has become a Muslim and he cannot accept interest from anyone. The Prophet صلى الله عليه و سلم as is mentioned, extinguished the interest of al-Abbas i.e. he could not accept any of the interest owed to him after he accepted Islaam, but it didn’t have anything to do with the interest that was given to him before Islaam.

As for the Muslim, it is not permissible for him to involve himself in the type of transaction mentioned in the question, and that is because in Islaam the end does not justify the means. All transactions that involve interest are not permissible in Islaam. The Prophet صلى الله عليه و سلم cursed the one who takes Riba (Interest) and the one who gives Riba and the one who is a witness to Riba…[3] to the end of the hadith. Even if this individual does not have the ability to study because he cannot afford it if he does not get involved in this type of transaction, then this does not make it permissible and he still cannot utilize this type of transaction as the end does not justify the means.

---- Here's the link to the PDF file, I couldn't post up the link cause it will constantly bring you back to the homepage Allaahu musta'aan.
May Allaah guide you to that which is better for you in this world and the next. Aameen !

http://studyislaam.org/index.php/activities/articles/77-general-lectures/134-2006-03-11-question-a-answer-session-by-shaykh-saalih-as-suhaymi?format=pdf
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وَمَنْ يُشَاقِقِ الرَّسُولَ مِنْ بَعْدِ مَا تَبَيَّنَ لَهُ الْهُدَى وَيَتَّبِعْ غَيْرَ سَبِيلِ الْمُؤْمِنِينَ نُوَلِّهِ مَا تَوَلَّى وَنُصْلِهِ جَهَنَّمَ وَسَاءَتْ مَصِيرًا

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