Tuesday, August 23, 2011

British Muslim Students Want Sharia-Compliant Student Loans

In Britain, the Federation of Student Islamic Societies is pressing the British government to create a new student loan system that is consistent with Sharia law.  According to yesterday's London Mail, until now students have only been required to pay interest equal to the rate of inflation-- an arrangement that apparently Muslim students found acceptable.  However changes that take effect next year will result in students paying higher rates of interest on the loans they take out to pay tuition. Rates will depend on their income after they graduate.  Some Muslim students say they may not apply to university because of the change.  The government's Department of Business, Innovation and Skills is discussing an arrangement for Sharia compliant loans that would be structured to "rent" education to students. However that kind of arrangement may not be in place until the 2013-14 academic year.

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