If a university student receives financial support from the government through a loan which has interest attached, but ends up saving some money due to the pandemic and online education, is it permissible to invest that money?
In other words, would any potential returns on the investment also be considered haram money, since the source is coming from a loan with interest which of course is not permissible? Or does how I spend the remaining money not matter?
A local Sheikh recently talked about this issue when he was asked and he replied that if we have to take out a loan for necessity (education), then the money from that loan should only be used for the necessity (one getting their education) and they should not use the money for other matters, which I presume would include investing. Is there a difference of opinion on this matter that may explain the differences here?
A brother when asking about this, used the example that he used some of the money to buy some items like a mic/video recorder (he did not need it for his education). If I remember correctly, the Sheikh said the items that were purchased from money that came from the loans should be sold or the equivalent amount be donated. Allah SWT knows best. I may have forgotten exactly what the reply was but it was along these lines.