Sharia-compliant student loans to boost Muslim access

A new system of 'Sharia-compliant' student loans is to be launched to allow more Muslim students to go to university, it has been announced, writes Graeme Paton for The Telegraph. David Willetts, the UK universities and science minister, said an alternative financial model was being created to satisfy Islamic law that forbids Muslims taking out loans that make interest.

Under the system, students would apply for taxpayer-backed loans but repay them into a mutual-style fund that would be ring-fenced to provide future finance to other students with the same religious beliefs.

The move will raise concerns over a two-tier system in which Muslim students pay less than other undergraduates. But the government insisted it would be set up in a way that ensured repayments were made at the same rate as students who take out traditional student loans.
Full report on The Telegraph site