Repaying School Loan with Interest After Graduation

25-4-2000 | IslamWeb

Question:

I was careless about borrowing money for school with interest and knew that it is haram to do so but I was immature and not yet responsible. Right now I owe about 40,000 and I don't see how, on my current income, I will be able to pay even half of it. The interest on that loan was partially paid by the federal government and I will have to pay the principal, plus the interest accrued since I graduated. I have three kids and with the support that I get plus my work, I hardly manage to pay for my family expenses and I don't know how I can avoid the interest. What do you think about my case: am I in sin by allowing the interest to increase, or I'm in a position that I might be excused? thank you very much.

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

May Allah reward you greatly for your adherence to your religion and we ask Him to enable you to do whatever He likes and whatever pleases Him. We ask Allah to make a way out to your difficulties. You must sincerely repent to Allah and not take a loan with Riba (usury and interest) again. Indeed, Riba is one of the grave major sins. You should fear Allah in your future life and He may forgive you for what you have committed in your past, and relieve you from all difficulties and provide for you from sources you never could imagine. Allah Says (what means): {And whosoever fears Allah 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.} [Quran 65:2-3]

If you can get rid of this interest, you must do so; otherwise you should pay back the whole loan and ask Allah to help you.

Allah knows best.