Existing Student Loan Problem

Assalamu alaykum,

I am undertaking a 4-year degree, and I took a student loan for the first 3 years not knowing it was haraam. I am about to begin my 4th year and I have 2 options which I would like your guidance on please.

  1. Take a gap year and work to earn money to pay for the 4th year whilst the loan for the first 3 years is still active and incurring interest.

  2. Complete my degree by extending the student loan to 4th year without a gap year and work a graduate job after the degree which pays higher than the year I would take out. This would mean that more of the loan would be paid back after 2 years in which case there would be less interest incurred overall.

My reasons for asking regarding these 2 options are that option 2 would mean extending the loan but option 1 would mean incurring more interest overall. So I am unsure as to which route would be best Islamically.

Jazakallah Khairan