A Muslim man in the United States recently sought advice on getting out of a student loan, claiming Islam does not permit it but was shot down and asked not use his religion as a crutch.
Amir, a resident of Seattle in Washington, wrote to experienced debt expert Steve Rhode, also known as the Get Out of Debt Guy, seeking to waive off deferment and interest from his student loans.
Amir owes half of what is now a $64,000 student loan debt. Islam permits loaning and borrowing money, but not loaning and borrowing with interest.
“I had two citi-student loans and at some point in time within the last 5 years they went to Navient.”
Amir explained he had unsuccessfully asked the loan servicing company to lower his payoff amount to $32,000, even though the actual amount he owes is $64,000 “because of deferment and interest.”
“I am offering to pay off the original amount I owe,” Amir graciously offered. As for the rest, he wants his creditors to acknowledge that his “awareness and conditions have changed” since he accepted the loan and since he has “been learning more” about Islam.
“Can I get the interest wiped out and close this account and case with just paying the original amount borrowed?” Amir asked.
However, much to his dismay, Rhode replied, “Asking any lender to adjust their terms and conditions after the fact for religious reasons is just not going to happen.”
Further, the debt adviser warned that, according to an imam, Muslims who choose to borrow with interest “are obligated to repay their entire debt”.
“If they don’t they will be prohibited from entering paradise when they die,” he added.
He recommended Amir to look into Zakat.
