Answered by Shaykh Abdul-Rahim Reasat
Question
I took a student loan, and I have repented for it. Would I be sinful or questioned if I never pay back the loan due to not earning 27k ( the repayment threshold) or if I died before, as my debt would be wiped out? I have some money saved up, I want to use it for giving to charity, marriage, car, etc.
Answer
I pray you are well.
If your income never reached the threshold of repayment or if you died before you were able to repay it, you would not be sinful, nor would you be questioned about the matter. The loan agreement is clear in stating they expect repayment from you after you earn a certain amount and not before. Therefore, if you were not able to pay there would be no demand for you to pay.
This is due to the nature of the contract. However, If you’re in a situation to pay it off, do so as soon as you can.
Debts are something a Believer takes seriously. The Prophet (Allah bless him and give him peace) said, “A wealthy man’s delayed repayment [of a loan] is wrongdoing (zulm).” [Bukhari], this means, that if someone has borrowed money, yet he delays repaying it when he has the money to, then that is a form of wrongdoing.
The best way is to not get into debt if it can be helped, and if you do, be serious about it and pay it off as soon as you can. This is the dignified behavior our faith calls us to.
May Allah grant you the best of both worlds.
[Shaykh] Abdul-Rahim Reasat
Checked and Approved by Shaykh Faraz Rabbani
Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History he moved to Damascus in 2007 where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.