Master’s Thesis in Intercultural Studies at NLA University College, Bergen IKF_THE 60 ECTS

Abstract

The act of receiving or paying of interest, known as riba, is considered a grave sin in Islam, and its prohibition is a defining principle of Islamic finance. Muslims living in predominantly non-Islamic countries face a dilemma when confronted with the problem of financing their higher education. The question of whether to take interest-based educational loans remains largely unexplored. This thesis examines cultural and religious understandings of Islam that influence Muslim students in Norway and their willingness or reluctance to take student loans. It also investigates informal financing alternatives that Muslim students consider. Using a constructivist grounded theory approach and semi-structured interviews with twelve Muslim students, the study reveals that students’ views on student loans vary from viewing them as a necessity to considering them a sin.

The key findings from this study highlight the reasons for both accepting and avoiding interest-based student loans in Norway. Through the concept of lived religion, this study finds how some Muslim students produce and reproduce Islamicness in everyday life by justifying their decision to abstain from interest-based student loans. Moreover, the study suggests that, despite being haram, student loans are a necessity for many Muslim students in Norway due to the absence of alternative Islamic financing. Similarly, the findings indicate that some Muslim students, particularly those that align with Islamic modernist perspectives, choose to take interest-based student loans, as their minority status in Norway leaves them with no viable alternatives. Given the lack of Islamic financing options in Norway, students report relying upon family and friend networks for meeting day-to-day economic needs. Ultimately, the results of this study contribute to a deeper understanding of the moral and practical dilemmas that Muslim students face in balancing their religious beliefs with financial realities.