I Took Out a Student Loan. What Do I Do About the Interest?

Answered by Shaykh Abdul-Rahim Reasat

Question

I took out a loan have now found out that there could be interest to pay on it. This has worried me a lot. I have some savings but I’m also due to get married soon. What should I do? How do I pay it back?

Answer

I pray you are well.

Do not worry. Yes, you made a mistake, but you were unaware of the impermissibility at the time. This is why it is the best practice to consult with a scholar before taking a step. Allah commands that: “Ask the people of the Remembrance if you do not know.” (16:47)

Start With Repentance

Use this remorse to your advantage and turn to Allah and repent. Ask Him to forgive your mistake. Express that you would not have done it had you known. Beg. Plead. All of this will make you closer to Allah, as long as you are sincere in it. 

The Prophet (Allah bless him and give him peace_ gave us great hope when he told us “He who repents from a sin is just like he who does not have any sins.” (Ibn Maja) Meaning, that neither have the effect of the sin sullying them.

In general, getting into a contract involving interest is problematic. Repent for that too. Ask Allah to make a way out for you so you can be far from the interest Allah hates. Someone who mistakenly enters into this is not like someone who knows but does not care about it being wrong. The attitude towards a sin is sometimes worse than the deed itself.

Paying It Back

Ask Allah for help and make a plan to pay the debt back as soon as you practically can. Insha’Allah, you won’t have to actually pay any interest. The problem lies in entering into the contract, paying interest, and receiving it. So the money you have from the loan is fine for you to use. 

It would still be permissible for you to get married and support you wife. Perhaps she would be willing to help you pay it back, and maybe you could reimburse over time.

You know your financial situation best. Speak to those close to you and consult with them. See how best to go about it. Have you considered borrowing the money off friends and family to pay the loan, and then to pay them as and when you can?

Many people have been in this predicament and Allah has helped them find a way out. They chose to get out of it sooner for the sake of Allah and He made it easy for them. Seek help from Allah and it will come.

May Allah make things easy for you.

[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. He was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.