I have a very quick question for you. I am from Brampton-Canada and a recent graduate of Humber Institute of Technology and Advanced Learning, Toronto. Anyways, here’s the situation: I received student loans from the federal and provincial government so that I can pay my post secondary tuition fee. Since I have graduated, now it’s time to repay the loan I borrowed from the government. Unfortunately, the loan has to be re-paid with high interest. Can you tell me what the Islamic ruling is on re-paying this type of loan with interest that was borrowed specifically for educational purposes only? A quick reply would be appreciated. I already know dealing with interest is a major sin but I don’t have any other options. Please reply back in the light of Qur`an and Hadith? Thanks a bunch!
It is not necessary for us to comment on the interest bearing loan as you state that you know it is a sin. However, if you took a loan, it must be paid.
If there is any way to apply for a concession in reduction, you should do that. If that is possible, the reduction will be from the interest amount. If you have no alternative, and are compelled to pay the interest, you should make Tawbah and Istighfar (sincerely repent) for violating the express order of Allah.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai