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Father Deals with Banks: Finance my Education?

07 April, 2016
Q As-salamu Alaykkum. I am 23 years old and recently graduated at college. So I decided to go to the US for my higher studies in the US and, Alhamdulillah, I got an admission to a university in Ramadan itself, which I believe was a blessing from Allah the Almighty. But since I haven't started earning money by myself, my father will be paying for my education in the US University. My father resides in the Middle East and does business there. But he has taken loans both in the Middle East and in India for purchasing either vehicles or land. I tried to convince him to pay up and finish the loans but he insists that the loans in Middle Eastern banks are Islamic Finance and that he will eventually pay the loans in India. But the fact is that he is paying interest for the loans in both areas. Now my question is: since I am living off my parent's money and he is paying interest, if I go to the US to pursue my education, will my livelihood be haram as it has its base on interest and loans? Should I cancel my plans to study for now until I find a halal way to finance my education? It was a big dream for me to study there but I am willing to give up on it for the sake of Allah. So, please, do give an answer at the earliest as I am preparing my documents for the travel.

Answer

Wa `alaykum as-Salamu wa Rahmatullahi wa Barakatuh.

In the Name of Allah, Most Gracious, Most Merciful.

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.

Dear brother, thank you for your question that shows your commitment to Islam’s rulings concerning financing your education.

As long as your father is leading business and dealing with Islamic banks, his income is halal and you are allowed to get your education fees from him.

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Responding to your question, Dr. Monzer Kahf, a prominent Muslim economist and counselor, stated,

Please, first notice the following:

  1. The finance that your father is getting in the Middle East may be Islamic; you cannot make a statement before you study them specifically. BTW, Islamic finance cannot be on loan basis, this means there cannot be Islamic loan as you mentioned in the question.
  2. You said that your father makes business in the Gulf. So his income is from business not from interest. Your question shows that your father pays interest not earns it. Is his business to give loans on interest? If not, as it is apparent from your statements, then his income is not haram.
  3. If you are going to finance your travel, education and living expenses from an interest-based loan you or your father will contract with a bank, I urge you to avoid that and postpone your study. But if your father is financing your study from his income (and wealth) not from a bank loan, then you should take this opportunity and go for it.
  4. Keep advising your father very gently to avoid interest transactions anywhere in the world and to keep all his business on halal basis. There are several Islamic banks in the Gulf that offer Islamic finance. Remember it is haram to pay interest as well as it is haram to take it.

Allah Almighty knows best.