Are Student Loans in Europe Permissible?
9-7-2026 | IslamWeb
Question:
In the Netherlands, student financing is a monthly fund that becomes a free grant if I graduate within 10 years, although programs take 4 years. However, if I fail, it becomes a loan with interest, unless there is a valid excuse like illness. I can fundamentally pay, but refusing it causes financial hardship and prevents me from saving money for the future.
Is it permissible to accept this if my firm intention is to graduate on time and avoid interest? Please provide evidence from the Qur'an, Sunnah, or Salaf.
Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
What you have mentioned regarding this assistance is not sufficient to issue a ruling on it, and we advise you to direct your question to the European Council for Fatwa and Research. For your benefit, we cite here what was stated in Council Resolution 81 (4/18), issued during its eighteenth session in Paris, regarding the ruling on student loans in Europe and the conditions governing the permissibility of benefiting from them:
"Firstly: It is permissible for Muslim students in Europe to benefit from the student loans provided by European states to their citizens, and to use them to help cover tuition fees and student living expenses, provided that these loans do not carry any interest-based increase linked to a cost-of-living index. This is based on the following:
1. It has been verified that the aforementioned student loans are, in principle, free of any interest-based increase.
2. The regulations governing the collection of installments from the student take into account the students' circumstances, their interests, and their ability to repay. The student is not required to pay installments until after obtaining employment with an average income; the installments are then deducted from him in accordance with the tax system, which takes into account the proportion relative to the individual's income, among other considerations that serve the interest of the borrowing student rather than the lending state." (End of citation)
Allah knows best.