Finland Muslim Students Shun Loans to Abide by Religious Rules
A reform to Finland’s student financial aid system came into effect on Friday. It increases reliance on state-backed loans by reducing grant-based support. But for Muslim students, loans with interest are not a viable option.
Mohamed Abdi, a board member of the Muslim Students' Association at the University of Helsinki, said many students are adjusting by working multiple shifts each week.
“Islam encourages avoiding debt wherever possible,” Abdi said. “We work part-time during the academic year and more during holidays. It helps us stay debt-free and meet our study expenses.”
Islamic finance prohibits interest. The Quran and prophetic tradition outline three key requirements for permissible borrowing: the intention to repay, the presence of witnesses during the agreement, and interest-free terms.
Abdi said he has taken summer courses to extend his student aid through the break, allowing him to save summer earnings for the school year. He lives with his family and contributes to rent, electricity, and water bills.
“Working during studies can delay graduation, cause fatigue, and reduce academic performance,” he said.
Some countries offer interest-free student loans or scholarships. In Britain, for example, students can apply for special grants tailored to Islamic finance principles. No equivalent system exists in Finland.
Abdihakim Mohamed, also a student in Helsinki, said no one in his circle has taken a student loan.
“We work, and we live within our means,” he said.
Mohamed supports himself mainly through substitute teaching and receives occasional financial support from his parents and older siblings.
“It's not always work in my field, but it covers the basics,” he said.
Though he is aware of Muslim students who have taken loans, Mohamed said most still avoid them. He has followed national debate about student debt and sees his own choice positively.
“After graduation, I won’t have to deal with debt or financial anxiety,” he said.
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Under the new system, students can still receive basic grants and housing aid, but the portion of support coming from loans has increased. This is intended to encourage faster completion of studies, but it poses barriers for students who avoid loans for religious or financial reasons.
Muslim student representatives say the system does not account for their circumstances. Without access to faith-compatible financing options, they face longer study times and heavier work burdens.
Finland currently offers no state-recognized Islamic finance instruments, and there is no pathway for interest-free student loans.
Source: Helsinkitimes.fi
