Student loan debt has surpassed home loans as the single largest form of debt in the United States, trapping millions of people in decades of financial bondage. This episode explores why interest (riba) has been prohibited not only in Islam but across every major religion and civilization throughout history, and introduces a practical, Sharia-compliant alternative that allows Muslim students to pursue higher education without falling into the trap of interest-based loans.
Why Islam Prohibits Interest
Interest ensures that the wealthy grow wealthier simply for having money, while the poor sink deeper into debt for needing it. A wealthy person buys a car for its sticker price, while a poor person takes out a loan and pays thousands more for the exact same vehicle. This system polarizes wealth within society and economically enslaves individuals, families, and even entire nations. The Prophet Muhammad (peace be upon him) emphasized the prohibition of interest in his final sermon to all of humanity, warning that it would lead to economic enslavement.
Interest ensures that the majority of the population will remain poor while a small portion will remain wealthy. You are making money off of money itself rather than selling a service or a product. This is why not only Islam but every major religion and even nations and empires forbid the use of interest.
A Continuous Charity: An Interest-Free Alternative
- A Continuous Charity is a nonprofit organization that provides interest-free loans to students pursuing higher education
- The organization charges only 5% in administrative fees to cover office and staff costs, with no interest whatsoever
- The program has been reviewed and endorsed by respected Islamic scholars including Sheikh Ibrahim Zidan
- Communities can partner with the organization to set up local investment programs, enabling donors to help students in their own areas
Islam encourages getting an education, but these lenders give loans with high interest knowing that students will take them and spend months, years, and decades paying them back. I met a man who is sixty years old and still hasn’t paid off his college loans.
Islam never takes something away without replacing it with something better. Instead of falling into the destructive cycle of interest-based student loans, Muslims and anyone who wishes to avoid usury can pursue education through organizations like A Continuous Charity. The prohibition of riba is not a restriction but a mercy, protecting people from financial systems designed to keep them permanently indebted. Visit acontinuouscharity.org to learn more about getting an interest-free loan or establishing a program in your community.
