Question: If my country gives me a loan for my education, can I keep the money that I do not spend? Also, if I end up saving money, will I have to pay zakat for that?
Answer:
Wa alaykum assalam wa rahmatullahi wa barakatuh,
Dear questioner,
Thank you for your important question.
If one is in receipt of a loan for education, one may keep the money one does not end up spending.
If the agreement stipulates that the loan will be partially or completely waived if you do not make a certain amount of money, then you would not be considered in debt. That would mean that when you come to calculate your zakat, you would not put the waived amount into the equation.
However, if it states that you do not have to pay back the money until you are making a certain amount, then the debt is still standing, but it is just not currently due. That would mean that one would not have to count it under debts currently due.
Please also see:
https://seekersguidance.org/articles/beneficial-knowledge/free-zakat-guide-calculator-advice/
I pray this helps.
[Ustadh] Farid
Checked and Approved by Shaykh Faraz Rabbani
Ustadh Farid Dingle has completed extensive years of study in the sciences of the Arabic language and the various Islamic Sciences. During his studies, he also earned a CIFE Certificate in Islamic Finance. Over the years he has developed a masterful ability to craft lessons that help non-Arabic speakers gain a deep understanding of the language. He currently teaches courses in the Arabic Language