Question Summary:
Student Loans

Question Detail:

 
I wanted to know the islamic perspective for student loans in the US. Do the same ruling applies for any gerneal laon or thier are exceptions as this loan is for the sole purpose of acquiring knowlege? 

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
In principle, it is not permissible for one to take out a student loan since they are essentially interest based loans. Interest loans are impermissible according to Shari’ah.
 
However, it is understood that most student loans are interest free until a few months before graduation, therefore due to the difficult financial position many university students currently find themselves in, one may take out a student loan and then pay back the loan within a few months of graduation without paying any interest. This can be achieved by working while studying and then paying out the “Student Loan” over a gradual period time within a few months of graduation. This is what students do there. 
 
Alternatively, you may also consider procuring an interest free loan (Qardh Hasan) from your friends, family members and relatives and pay them over a fixed period of time.
 
And Allah Ta’āla Knows Best
 
Ismail Desai,
Darul Iftaa
 
Checked and Approved,
Mufti Ebrahim Desai.