(Adnkronos) – Several British universities have started promoting a public program of interest-free university funding, compliant with the principles of Islamic finance. The Telegraph reports this, citing, among others, the universities of Bristol and Leeds and University College London. The government aims to introduce the program in England as soon as possible after the launch of student finance reform, scheduled for next year. To develop the system, according to the newspaper, the executive has paid over 365,000 pounds, about 437,000 euros, to the Islamic Finance Council UK.
The program, called Alternative Student Finance, will be open to all students eligible for ordinary funding and is designed for those who avoid interest-bearing loans for religious reasons. In ordinary loans, the rate varies depending on the plan, and, in some cases, on income. Interest increases the outstanding debt, while monthly deductions are calculated on the portion of income exceeding the threshold set by the plan. The new program provides for payments of equal amount and at the same deadlines. Interest on ordinary loans flows into the general state revenues, while contributions from the new program will feed a fund reserved for future beneficiaries, according to the Islamic principle of ‘takaful’, a form of mutual support. Unpaid sums will be borne by taxpayers. According to official forecasts cited by the Telegraph, almost half of the total student debt will remain unpaid.
“This scandalous anti-British program creates a two-tier education system and a divided society – declared Reform UK’s education spokesperson, Suella Braverman – The Labour program demonstrates that they are addicted to double standards in every aspect of British life. Sharia-compliant loans are, by their very definition, exclusionary and exclusively benefit Muslim students, thus creating parallel institutions incompatible with the British way of life. What makes it even more grotesque is the fact that the Treasury, and therefore British taxpayers, will have to foot the bill if students do not repay the loans.” A spokesperson for the Department for Education replied that it is “entirely false to claim that the Alternative Student Finance program provides preferential treatment to Muslim students.” “All graduates will fully repay their loans, whatever system is used, which also provides an equivalent alternative to interest – he added – This approach to student finance opens the doors of higher education to thousands more students and ensures that no one is excluded from university because of their faith. Student loans work differently from other loans; the burden on those who take them out is modulated, and the system is already largely subsidized by the government.”
