Student Loan Interest Payment

Everyday Islamic Finance Personal and Family Finance
#1

Salaams

What if a person has taken a student loan but is confident that he will not earn enough to pay this off before it gets wiped after 30 years? (Ten years to go now).

Should this person continue to incur interest on this loan knowing that it will not be paid and will be wiped or should the person pay off the loan including the interest, from his savings?

Thanks

#2

Wa alaykum salaam,

As per the creditor’s terms, if you are not currently demanded to pay or requested to pay, you are not obliged to pay at present.

Regards