1) Whats the hanafi ruling on this 2) Sometimes opting out of a loan is extremely difficult especially for graduate school. What if one knows they cannot pay right away and would like to use the two years with 0% interest rate as a time period to slowly pay off the debt? 3) The majority of the people don’t have, for example, $10,000 to pay tuition per semester. I understand we should try to get scholarships and save up some money for grad school, but realistically speaking it is hard to save up somewhere from $50,000 to $150,000 with undergraduate degrees. 4) Also, one would be very lucky to find a 0% interest rate loan. What is one supposed to do in such a situation as to avoid riba?
Answers/cpmments: وعليكم السلام ورحمة الله وبركاته
a) One can attain a loan by providing honest data and receiving the loan based on that (truthful) data. To give false financial information would be sin. Anything based on falsity would remove the full blessings of Allah (SWT).
b) One would become sinful once the loan expires and the interest payment becomes incumbent upon you or anything that you pay which is related to paying more then you had originally intended. (the above response can be used by ahnaf for greater taqwa)
a) In all fairness, I too went to graduate school. I worked on the ‘side’ – not due to poverty — but due to the need of attaining responsibility. It is possible. Parental/family support systems should also be sort should they exist.
b) To know that you qualify and not intend to pay it within the zero % time, and to purposely delay its payment beyond two years would be a major sin. Attaining an education based on an intentional haram removes the Mercy of Allah (SWT).
3) Go to a school that you can afford. Again it is possible to attain employment as a graduate assistant, etc. I am a firm believer, if one wants to do it, they can. By contrast, to merely go to graduate school due to the lack of employment in the market is not a very intelligent strategic move for all – unless education is your passion (but then, for the pleasure of such passion you must be able to fund it.)
By contrast, if your employer demands a higher education and your employment depends on it, then you would be allowed to pursue such a haram transaction based on ‘necessity.’
(I have been part of the system. I have seen others pay for it. Where there is away, there is a will. For the record, this has been done twice by me: paid for my secular education, thereafter embarked on a program that was worth 7 years for my sharia based education without delving in interest or taking a loan. It can be done if determination prevails.)
Solution for our youth. (as mentioned in fiqh class) Sleep less, talk less, and eat less (but eat healthy). Go out less, live a simple life and keep your head in the books. Or relax now and pay its price later in life with corrupt transactions.
4) Such loans are available. I have been sent paperwork to examine such loan transactions. I prefer people to not bog me down with such paperwork; however, such loans do exist as part of our current economy.
note: Anything built on haram is sure to be devoid of its maximum babrakah
Allah Certainly Knows Best.
p.s. The above question is a repeat which i have not posted prior. I thank the person for sending it to us. I hope i have brought closure to it from my side.May Allah (SWT) bless you and all those pursuing higher education.Ameen.