In Islam, riba is seen as a form of exploitation and is strictly prohibited.
This includes any transaction that involves the payment or receipt of interest.
Therefore, any loan that involves the payment of interest would be considered haram or prohibited.
Student loans in many countries are often provided with interest rates that can be very high, making it a significant financial burden for students and their families
This creates a dilemma for Muslim students who may be unsure if they are permitted to take out student loans.
In Islamic finance, there are alternatives to interest-based loans that can be used to finance education.
One of the key principles of Islamic finance is the concept of profit-sharing
This means that lenders and borrowers share in the risks and rewards of an investment