Should I Start to Repay a Student Loan I Am Not Currently Required To?

Hanafi Fiqh

Answered by Shaykh Faraz Rabbani

Question: Assalam alaykum,

When I was studying, I took a loan out to cover the cost of my tuition fees. However, I am currently earning below the Student Loan Company’s repayment threshold.

Is it mandatory for me to start paying the debt though I’m not required to payback at this moment by this company?

Answer: In the Name of Allah, the Merciful and Compassionate

Walaikum assalam wa rahmatullah

I pray this finds you in the best of health and spirits.

The key concerns would be:
(1) if your debt is accumulating interest (riba), then you have to expedite repayment, within reasonable ability;
(2) you shouldn’t unduly avoid repayment;
(3) it is permissible to delay repayment when below their threshold–and recommended to take the means of hastening repayment, and acquiring the financial capacity to repay.

Please see: Debt: How It Destroys Lives, How You Can Fight It

And Allah is the giver of success and facilitation.

Faraz Rabbani