Government launches consultation on shari'ah compliant student loans

The Daily Telegraph reports on the Government’s announcement of the introduction of shari’ah compliant student loans to mitigate the risk of Muslim students opting out of higher education because of the student loans required to pay for tuition fees.

To ensure access to education and to prevent unintended discrimination against Muslim students, the Department for Business, Innovation and Skills has launched a consultation on ‘an alternative shari’ah compliant student loan scheme’.

Universities Minister, David Willetts said “We are aware that some Muslims and young people of other faiths might be put off taking out a conventional student loan.

“To address this we have developed a potential model alternative finance product which would be Sharia-compliant and could be offered alongside traditional student loans.”

The plans were also alluded to in the speech delivered by the Prime Minister, David Cameron, at the Muslim News Awards for Excellence ceremony on Monday. The PM, outlining the Government’s broader efforts to tackle anti-Muslim prejudice, said:

“…tackling Islamophobia means making absolutely sure that no person is held back from living their life or reaching their goals simply because of the faith they follow.

“So yes – we’re delivering on Sharia-compliant student loans, Help to Buy deposits and entrepreneur funds.”