Stephen Timms: 'What happened to Sharia-compliant student loans?'

Muslims make up around nine per cent of the student population. The number could – and should – be higher. Sharia law prohibits riba (interest).

Research shows that a significant number of British Muslims are unwilling to enter higher education because of the current, interest-based student loans system. They defer their studies until they have saved up the full tuition fees, or do not attend at all. They – and the country – lose out.

Stephen Timms tabled an Early Day Motion calling on the government to introduce Sharia-compliant student loans (Image: Archant)

David Cameron promised to introduce alternative student finance in his speech to the World Islamic Economic Forum in London in 2013.

“Never again should a Muslim in Britain feel unable to go to university because they cannot get a student loan – simply because of their religion," he said.

The following year, the government published a consultation. It recommended a takaful system that would function like the existing scheme. Repayments after graduation and debt levels would be identical to conventional student loans. The fund would still be managed by the Student Loans Company, but it would be segregated from conventional student loans.

In 2017, the Higher Education and Research Act gained royal assent. It gave the government the power to introduce such a takaful system.

However, since then, the government has dithered. Eight years after David Cameron’s promise, Sharia-compliant student finance has still not been launched.

David Cameron was right: Muslim students should not miss out. Our education system must offer equal opportunities.

My Early Day Motion is attracting support. I hope it continues to gain backing from MPs across the chamber, and can persuade the government – belatedly – to act.