_ Is it permissible to take HECS-HELP loan for higher education?
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
_ In HECS-HELP loan, the debt is indexed each year to reflect changes in the Consumer Price Index (CPI). Indexing the debt to reflect changes in the CPI is not permissible according to Shariah, as it falls in the definition of interest. Shaykh Mufti Taqi Usmani (May Allah protect him) has written a detailed treatise on this subject. (See: Buhooth fi Qadaaya Fiqhiya Mu’asaara: 1/169-196; Fiqhi Maqaalaat: 1/49-78)
Hence, it is not permissible to take HECS-HELP loan. [1]
And Allah knows best.
Mufti Faizal Riza
15/12/2011