Answer:
(Fatwa: 215=217/M)
Interest (usury) money is impure; therefore one must not utilize it in personal needs. Allah Almighty says: but Allah has permitted trade and forbidden usury. (2/275). Therefore, you must not use this amount in your tuition fee because it is also a kind of utilizing interest. Yes, you can distribute the amount among the poor and needy without having any intention of reward:
لان سبیل الکسب الخبیث التصدق الخ (الشامی)
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband
