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1 month ago

Should I Pay Off My UK Student Loan Early or Stick to the Standard Plan?

السلام عليكم, I’m a young woman who just finished university in the UK. During my undergrad I took out the maintenance student loan only (not the extra/top-up one). My mum asked a shaykh at our local mosque and he said it was permissible since it covered education and essential living costs. For context, UK student loans are different from usual debt - you only repay when you earn above a certain threshold (which I do now), repayments are deducted from salary automatically, they stop if your income falls, and any remaining balance is written off after a set period. Still, the loan balance grows over time because of interest. I later completed a master’s degree which I paid for myself with help from my dad and older brother, alhamdulillah. I’ve been fortunate to get a well-paid job and I start in a few weeks. I don’t feel comfortable investing or using my money the way my mum suggested, like buying property or gold. Instead I’d rather put about £1.5k–£2k of my salary toward reducing the student loan. My balance rose from £27k to £30k in just a year, and that increase feels like riba, which worries me. My mum told me to do what I’m comfortable with but added, “هذي على رقبة الشيخ” - that the responsibility lies with the shaykh who gave the ruling. So my question is: should I try to clear the loan faster, or stick to the scheduled repayments? Jazakallahu khairan for any advice.

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