Shall I Pay My Student Loan Debt or Earn Less to Avoid Paying Interest?
Hanafi Fiqh
Answered by Mawlana Ilyas Patel
Question
I have an interest-bearing student debt (UK) from when I was not Muslim. But it might be possible to avoid paying the interest; here are the rough details:
If I earn over £25,000, the UK govt takes repayments from my wage, like tax. But if I earn less than £25,000, they don’t take repayments against the debt. After 30 years, the government would write off the debt, according to the contract.
So, I can artificially cap my earnings below £25,000 for 30 years, never paying off the interest. Given this, is it haram to pay off the debt, including interest?
Is it worth noting that I have a single mum who might need support in the future? It would be difficult to start a family, too.
Answer
In the Name of Allah, the Most Merciful and Compassionate
Allah Most High rewards you for embracing Islam, for serving your mother, and seeking guidance, Amin.
The debt will remain a debt Islamically. However, you may cap your earnings to below £25,000; this way, you can avoid paying interest.
Save up as you go along so you can start a family. Allah Most High will bless you with a good job and earnings to support yourself, your future wife, and your mother.
Muslims Only Supported Helping the Weak
Abu Darda (Allah be pleased with him) reported that the Messenger of Allah (Allah bless him and give him peace) said, “Seek out your vulnerable on my behalf. Verily, you are only given provision and support from Allah due to the weak among you.” [Tirmidhi]
I would like you to go through the valuable answers and links below. You will receive guidance and direction in sha Allah.
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The Path of Muhammad: Birgivi’s Manual of Taqwa Explained – YouTube
Istikhara, The Prayer of Seeking Guidance: The Ultimate Guide – A Reader – SeekersGuidance
How Does One Perform The Prayer Of Need (salat al-haja)? – SeekersGuidance
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I pray this helps with your question.
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani
Mawlana Ilyas Patel has received traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Presently, he lives in the UK with his wife and is interested in books and gardening.
