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A new model for Sharia law-compliant student loans has been unveiled.

The proposed system will enable people whose religious beliefs forbid them from taking out loans that accrue interest to take advantage of student loans.

Speaking at a Universities UK Conference on universities and growth, David Willetts launched a consultation on the proposed model asking for views on whether it is an acceptable alternative to the conventional system.

The model will be available to anyone who adopts similar financial principles. Anyone taking the loans will not be at any advantage or disadvantage – they will repay the same amount as other borrowers.



My thoughts ?

Why make it a two tier system? Why not just adopt the so called sharia system and be done with it?

I agree with you. When I was in college, student loans were very low interest loans, and I borrowed only enough to get pay tuition, and made payments even while in school.

Too many students are selling their souls, these days, to loan sharks operating under the guise of Student financing, with government-guaranteed (read that, government-enforced) high-interest loans.

Why should the government be considering anything that is religious-oriented?

LarsMac;1451381 wrote:

Why should the government be considering anything that is religious-oriented?


As it happens I believe the Sharia idea that interest is immoral or whatever they call it is spot on.

Apparently a straight fee is OK for the 'service' of a loan, but the on going criminal use of extortionate interest is not.

Considering that western banking has brought many countries to their knees, the Sharia idea looks very appealing regardless of the religious doctrine involved.



Sharia Loans



Sharia Investment